US Dollar falls on Medvedev comments

Sterling rose by 0.91 cents (0.56%) against the US dollar yesterday, finishing the day at $1.6410.

• In early trading yesterday sterling strengthened against the dollar, after Russian President Dmitry Medvedev hinted that Moscow may be looking to reduce the share of US assets from its reserve currency portfolio.
  
• The pound’s gains were further extended following the release of UK inflation figures mid-morning. May’s reading of 2.2% was slightly down on April’s reading of 2.3% but not as low as the 1.9% analysts had been forecasting.
  
• In trading so far today the pound has continued its rise against the greenback as the leaders of Brazil, Russia, India and China continued their first summit, pushing the sustainability of the dollar’s reserve status to the top of the currency market’s agenda once again.
  
• In the UK, Claimant Count Change data and MPC Minutes are due at 09.30 BST, whilst in the US Core CPI (MoM) is out at 13.30 BST. US Fed Chairman Ben Bernanke is also due to speak at 17.00 BST.