sterling

The pound has fallen to a three-month low against the dollar ahead of a Bank of England Monetary Policy Committee meeting today, the first of 2012.

Sterling and gilt yields have dived following the surprise announcement by the Bank of England it is increasing its quantitative easing programme by £75bn.

Inflation climbed marginally in August as expected, driven up by higher utility bills.

JP Morgan has launched a sterling hedged share class for its Diversified Commodities fund run by it alternatives arm, Highbridge Capital Management.

Sterling tumbled a cent against the dollar earlier today on surprise news Britain's manufacturing sector grew at its slowest rate for two years in May, sparking fresh fears about the economic recovery.

Sterling has recovered from a seven-week low, moving higher against the dollar after it fell on Moody's threat to downgrade a raft of UK banks.

Inflation rose to its highest level since September 2008 last month, reversing the previous month's retreat and breaking sterling's five-day decline against the dollar.

Sterling jumped across the board after the Bank of England's latest report said inflation is likely to remain above target for longer, fuelling expectations the MPC will act sooner to tackle price rises.

Speculation the Bank of England will lower its economic growth forecasts has caused the pound to slump in afternoon trading.

2CG, the boutique founded by Charles Glasse and Christopher Garsten, has added a sterling share class to its flagship European Capital Growth fund which will be available to retail investors for an eight-week period.