Pound declines on inflation, house prices

Pound declines on inflation, house prices

Story link: Pound declines on inflation, house prices

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The pound was weaker Tuesday on new data showing that UK inflation was at 4.4 percent in July, higher than anticipated and more than twice the target set by the Bank of England, and after the Royal Institution of Chartered Surveyors reported that house prices were lower again in July.

RICS said that 83.9 percent more real estate agents reported lower prices than said they saw higher prices during the month.

That number was lower than those reporting price declines in June, but all 11 regions reported on showed lower prices on the month.

In late morning trade in New York, it took $1.8991 to buy a pound, while the UK currency traded at 78.41p to the euro.

The greenback was weaker against the euro, however, on sentiment that its gain of 4.3 percent against the shared currency since the beginning of the month was overdone.

It took $1.4891 to buy a euro, while the shared currency was weaker versus the yen, to ¥163.5126.

The rouble also gained on the US dollar, trading at 24.275 to the dollar at late morning in New York after Russian President Dmitry Medvedev called a halt to fighting in Georgia.

The Australia and New Zealand dollars were both lower on the session, with the Aussie dropping for the 11th consecutive session on expectations that the Reserve Bank of Australia will cut interest rates at its next meeting, scheduled for 2 September.

The Aussie, which has dropped 10.4 percent in less than a month, was worth 87.55 cents US while it took ¥96.1386 to buy an Australian dollar.

The kiwi, meanwhile, traded at 69.80 cents US and at ¥76.647.