LONDON Dec 18 Sterling rose to its highest since late September against the dollar on Tuesday just before UK inflation data.
The pound rose to 0.3 percent to $1.6224, with more gains giving it the potential to target the September peak of $1.6310.
It showed little reaction when the data was released and was last at $1.6220. It showed the UK consumer price index held at an annual 2.7 percent in November, slightly above forecasts for 2.6 percent.
The rise in inflation could add to expectations the Bank of England will hold off from more easing for now. (Reporting by Jessica Mortimer; editing by Anirban Nag)