December 17, 2003	Wednesday	Shawwal 22, 1424

LONDON, Dec 16: Sterling hit a new 11-year high against the dollar on Tuesday as weak US inflation data reinforced expectations US interest rates would remain low, putting the greenback under renewed pressure.

News that British inflation also slowed in November kept sterling under pressure against the euro in early trade, but it later recovered as the euro’s failure to break above key resistance at 70.75 pence encouraged dealers to take profits.

Sterling rose as high as $1.7511 in the European afternoon, surpassing last week’s high at $1.7509 to notch its strongest level since October 1992, the month that followed Britain’s exit from Europe’s exchange rate mechanism.

Sterling has gained 8.5 per cent against the dollar since the start of the year, but underpeformed the euro which is up over 17 per cent.

Meanwhile, the single European currency rose to as high as 1.2361 dollars at about 0930 GMT. It later stood at 1.2346 dollars against 1.2320 in New York late on Monday.

The dollar also remained under pressure against the Japanese currency, trading at 107.64 yen against 107.54 on Monday.

The euro was changing hands at 1.2346 dollars from 1.2320 late on Monday in New York, 132.90 yen (132.45), 0.7071 pounds (0.7049) and 1.5547 Swiss francs (1.5512).

The dollar stood at 107.64 yen (107.54) and 1.2593 Swiss francs (1.2595).—AFP/Reuters