The pound was steady against the dollar on Thursday as investors awaited the Bank of England’s monetary policy statement later in the day amid renewed concerns over Chinese deflation.
GBP/USD was at 1.5371, holding above overnight lows of 1.5339.
The BoE was widely expected to leave interest rates on hold at record lows.
Investors were looking to the minutes of the meeting for indications on the monetary policy committee’s outlook on inflation and the global economy in the wake of recent market turmoil.
Fresh concerns over slowing growth in China hit market sentiment after data on Thursday showing that while the annual rate of inflation in China edged higher in August producer prices fell at the fastest rate in six years.
Official figures showed that the prices charged by China’s manufacturers fell by an annualized 5.9% in August. It was the largest decline since late 2009 and underlined fears over weakening demand.
The pound edged higher against the euro, with EUR/GBP easing 0.14% to 0.7281.
The euro was also slightly lower against the dollar, with EUR/USD dipping 0.1% to 1.1196.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was fluctuating between small gains and losses and was last at 96.01.