The UK inflation rate edged back down to zero in August, from 0.1% the previous month, as fuel prices continued to fall.

Some economists had, however, been expecting inflation could head back into negative territory. Its failure to do so left some currency traders pondering the possibility that the door remained open for the Bank of England to raise interest rates.

A majority of economists expect the UK central bank to wait until next year to start raising rates. In contrast, the US Federal reserve could raise its benchmark rate this week.