Sterling tumbles more than 1% vs dollar after U.S. inflation data

A shop cash register is seen with both Sterling and Euro currency in the till at the border town of Pettigo, Ireland October 14, 2016. REUTERS/Clodagh Kilcoyne

LONDON, June 10 (Reuters) – Sterling fell by more than 1% on Friday and was set for a second consecutive week of declines against the U.S. dollar as Britain’s gloomy economic outlook left investors on edge while strong U.S. inflation data boosted the greenback.

The pound fell below $1.24 after data showed that U.S. consumer prices accelerated in May, suggesting that the Federal Reserve could continue with its 50 basis point interest rate hikes through September to combat inflation. read more

The Bank of England is expected to raise interest rates next week for the fifth time since December, its steepest run of rate hikes in 25 years. read more

Prompting…