Sterling and the euro fell on today and the U.S. dollar clawed back a recent dip as relief at the Bank of England's intervention in bond markets faded.

The pound managed to make up some ground against the dollar this morning, recovering from the 37-year low it hit earlier in the week.

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Sterling slipped against a rampaging dollar this morning, lingering near 2-1/2-year lows.

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Inflation in The UK has again reached new highs, climbing to 10.1% in July mainly contributed by an increase in prices for food and fuel. Expectations for inflation hitting double figures have come much earlier than the initial time-frame of October, and is also the first time since February 1982 that inflation has been in double figures.