British pound is gaining ground above $1.35 mark on Wednesday as Brent touching $100 is reigniting fears of inflation and further interest rate hikes by Bank of England. Escalating tensions in the Middle East heightened concerns over energy supplies increasing prospects of rate hikes. UK 10-year gilt yield stood at 5.2%, remaining close to 19-year highs. GBP/USD is also seen supported around $1.3536. Pull back in dollar index under 99 mark over a surging yen is also providing much support to the counter. Moreover, UK Chancellor John Healey unveiled a series of measures designed to encourage economic growth and draw more private investment into the UK, further aiding gains in the pair. US inflation figures due this week will also be keenly watched for further cues. On the NSE, GBP/INR futures are trading marginally higher at 128.90.
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