Sterling hits two-month low as dollar gains

London

EXPECTATIONS that US inflation and growth will outstrip the rest of the developed world's prodded the dollar higher across the board on Wednesday, knocking half a cent off the euro and driving sterling to a two-month low.

Further gains for the greenback are one of the big consensus plays for financial investors going into 2017, although there have been signs of more doubt in recent weeks, with analysts beginning to wonder how much further appreciation a Donald Trump White House will tolerate.