LONDON, April 11 (Reuters) - Sterling hit its highest level this week against the dollar on Tuesday, while Britain’s internationally focused FTSE 100 stock index pared gains, after data showed UK inflation stayed above the Bank of England’s 2 percent target in March.
Consumer prices increased in March by 2.3 percent compared with a year earlier, the Office for National Statistics said, in line with economists’ forecasts in a Reuters poll. That left prices rising at the same pace as February, which was the fastest since June 2013.
Sterling had jumped around 0.2 percent immediately before the data, and fell back in the minute after its release, but it quickly turned higher again, hitting $1.2446, up from around $1.2405 beforehand.
Against the euro, sterling inched up to 85.24 pence .
Britain’s FTSE pared gains slightly after the data, and was last up 0.3 percent.
Long gilt futures pared gains to hit a session low of 128.14, still up 9 ticks on the day. (Reporting by Jemima Kelly, Andy Bruce and Helen Reid; Editing by John Geddie)