Sterling hits one-year high against dollar

Sterling has jumped to a one-year high as the Bank of England came under pressure to hike interest rates following a larger-than-expected leap from inflation.

The pound was up more than 0.8% versus the US dollar at 1.327, marking its highest level against the greenback since September last year.

The currency was also gaining ground against the euro, hovering near a six-week high at 1.109.

The stronger pound weighed on the FTSE 100 Index, which closed down 12.9 points at 7,400.69.

Brent crude prices rose 0.7% to $54.30 (£45.39) per barrel following reports oil production among Opec members fell last month, suggesting agreements to output curbs could start impacting the global glut.