The British pound settled at $1.27485, close to a three-month low of $1.27190 from Tuesday.
The US dollar approached a six-and-a-half-month high against other major currencies on Wednesday and the Japanese yen fell to its lowest level since July, driven by so-called Trump trades ahead of key US inflation data.
The dollar is reaping the benefits of Republican Donald Trump’s victory in the US presidential elections last week, which pushed the US currency to its highest level since May 1 at 106.21 against a basket of currencies.
Investors are taking into account tax cuts and new trade tariffs under the next administration, measures seen as inflationary and could prompt the Federal Reserve to limit the extent to which interest rates can be eased.
