Sterling traded slightly higher on Wednesday, as some traders bought back into a currency that had slipped to a two-week low the day before amid a flight to safe havens in financial markets following a crash in oil prices.

The pound is still well above its mid-March lows, but analysts said the currency remains cheap, though its correlation to equities and other riskier assets make it a hazardous bet.

The British currency was last up 0.3% both against the dollar and the euro, trading at $1.2333 and at 88 pence respectively.

The pound got a little bit of a kick on Wednesday from reports that Britain's inflation rate dropped in March, when oil prices tumbled and the coronavirus crisis escalated, but was in line with expectations.

Source : Reuters