Sterling falls but remains within this week's parameters

Sterling fell on Tuesday after the dollar surged against a basket of currencies, but the pound remained bound within the week's parameters due to conflicting factors on the currency.
 
GBP/USD last traded at 1.2467, down from the opening of 1.2520, with an intraday high at 1.2545, and a low at 1.2440.
 
Fed Chair Janet Yellen's statements today buoyed the dollar and hurt other currencies after asserting the pace of gradual rate increases this year as inflation climbs due to gains in energy and crude prices.
 
Yellen's bullish stance pushed the dollar index to a three-week high, heaping pressure thereafter on the pound today.
 
However, sterling's decline was limited and within the range of this week, unlike the large losses made by the euro, due to expectations of a policy tightening soon by the Bank of England, as inflation improves in Britain, underpinning the pound.