GBP rose after British inflation data and the Yuan at its lowest level in 9 months

The pound was set to post its biggest one-day gain in nearly two weeks on Wednesday after data showed Britain’s core inflation remained high in July, while the yuan fell to a nine-month low as concerns mounted of a further slowdown in growth.

The pound sterling rose in the latest transactions, about 0.3 percent, to $ 1.2747, heading to record the largest jump in one day since the seventh of August.

Britain’s core inflation, which excludes volatile energy and food prices, was 6.9 percent in July, unchanged from June’s reading and above expectations of a reading of 6.8 percent in a Reuters poll.

In Asia, the yuan fell to its lowest level since November in both the internal and external markets, falling to 7.2989 and 7.3379 per dollar, respectively.

Weak Chinese data initially dragged the Australian dollar, which is usually used as a liquid substitute for the yuan, to a nine-month low.

The New Zealand dollar, which also fell to a nine-month low of $0.5932 in early Asian trade, rebounded after the Reserve Bank of New Zealand’s monetary policy meeting, to trade 0.6% higher at $0.5984.

The dollar index fell 0.2% to 103.02, but it did not stray from a one-month peak it hit on Monday, thanks to higher bond yields in the wake of strong US data. The euro rose 0.2 percent to $1.0924.

The yen fell and reached the key level of 145 against the dollar for four consecutive sessions, which led to intensive selling of the dollar by the Japanese authorities in September and October of last year.