The dollar hovered around the same mark this morning after new data suggested that inflation would remain in line with expectations in the US.

This morning the dollar stood at 1.7526 to the pound and at 1.1959 against the euro.

News from the Labour Department in the US indicated that consumer prices had risen by 0.7 per cent in January.

Excluding the rise of food and energy costs, however, the underlying rate rose by just 0.2 per cent, with the muted rise fitting most analysts' expectations.

The news added to speculation that the Federal Reserve will continue to inhibit inflation, with the trajectory suggesting the Fed will continue to incrementally increase the base rate.

At present the federal funds rate stands at 4.5 per cent, with the majority of observers tipping the 15th rate hike to take place next month.