By Mark DeCambre, MarketWatch

Dollar gauge holds near highest level since late April

The British pound dropped to near its lowest level of 2019 after data showed U.K. core inflation accelerated to a 2.1% annual rate in April (http://www.marketwatch.com/story/uk-inflation-accelerates-in-april-2019-05-22), moving ahead of the Bank of England's 2% target, putting pressure on the central bank to raise interest rates.

The data come as U.K. Prime Minister Theresa May pitched a plan for a fourth vote (http://www.marketwatch.com/story/theresa-may-vows-bold-offer-to-win-support-for-brexit-deal-2019-05-19) on her plan to exit from the European Union that appears to be gaining little traction on Parliament. May, on Tuesday, offered the option of a second Brexit referendum if her deal to part ways with Europe's trade bloc was passed.

Sterling remained under pressure as Andrea Leadsom, the leader of the U.K.'s House of Commons, quit on Wednesday (http://www.marketwatch.com/story/british-pound-sinks-as-uk-house-of-commons-leader-quits----underlining-mays-brexit-challenge-2019-05-22), citing disagreements with May's Brexit plan, according to reports.

A letter from Leadsom, announcing her resignation said she couldn't ".fulfill my duty as Leader of the House of tomorrow, to announce a bill with new elements that I fundamentally oppose."

(http://twitter.com/andrealeadsom/status/1131267480742236160)

Leadsom is expected to be a possible candidate to take over as premier when May steps down, according to the Guardian (https://www.theguardian.com/politics/2019/may/22/andrea-leadsom-quits-over-theresa-mays-brexit-bill).

Fears for a potential disorderly exit from the EU have trounced sterling. A dollar bought $1.2660, up 0.4%, against sterling , compared with $1.2706 late Tuesday.

The Fed's sublime 'some time'

The U.S. Dollar Index , a measure of greenback against six rival currencies, was trading about 0.02% higher at 98.077, hovering around 98, representing its highest level since April 26, according to FactSet data.

The buck gauge, along with the rest of the market, appeared to dismiss the Fed's minutes.

The account of policy makers's April 30-May 1 gathering showed officials anticipated the Fed's patient stance on interest rates to potentially last for "some time." (http://www.marketwatch.com/story/fed-minutes-voters-say-patient-stance-can-last-for-some-time-2019-05-22) Some members of the FOMC said they expected subdued inflation to be transitory, but that if prices didn't show signs of rising in the next few quarters, inflation expectations were at risk of staying stuck below 2%.

See: (http://www.marketwatch.com/story/whats-next-for-the-fed-wall-street-to-sift-for-clues-in-recap-of-last-fomc-get-together-2019-05-21)What's next for the Fed? Wall Street to sift for clues in recap of last FOMC get-togethe (http://www.marketwatch.com/story/whats-next-for-the-fed-wall-street-to-sift-for-clues-in-recap-of-last-fomc-get-together-2019-05-21)r (http://www.marketwatch.com/story/whats-next-for-the-fed-wall-street-to-sift-for-clues-in-recap-of-last-fomc-get-together-2019-05-21)

Outside of the Fed's statements, the U.S. dollar has benefited from U.S.-China trade tensions, which have thus far helped to underpin the flight to the perceived safety of dollars versus yuan if a tariff tiff intensifies between the world's largest economies.

Meanwhile, the offshore yuan was mostly flat against the dollar on Wednesday. A dollar bought 6.924 offshore yuan, while its onshore counterpart was flat at 6.9022 versus bucks, compared with 6.9023 late Tuesday in New York.

(END) Dow Jones Newswires

May 22, 2019 16:03 ET (20:03 GMT)