The US dollar rose to a 26-month high against British pound yesterday and was mostly higher against other major currencies.

The British pound hit a 26-month low of US$1.8171 before trading to US$1.8218 late in New York yesterday. The pound, lost almost 3.5 US cents this week, has declined about 14 percent of its value against the dollar since its high in November.

The European Commission said that euro-zone inflation is down slightly from the record high of 4 percent in June and July. The euro rose to US$1.4671 late yesterday in New York from US$1.4702 late Thursday.

Canada's government reported its economy grew more weakly than expected in the second quarter and contracted more than had been thought in the first quarter.

The dollar rose to 1.0630 Canadian dollars from 1.0519 and it also rose to 1.1016 Swiss francs from 1.0994.