SINGAPORE, July 12 Reuters The dollar sank to a twomonth low against major peers on Wednesday in the leadup to a U.S. inflation reading, while sterling scaled a 15month top on expectations the Bank of England BoE has further to go in raising rates.

The yen jumped to a onemonth high and strengthened past 140 to the dollar for the first time in a month, helped by a slump in U.S. Treasury yields and bets for a policy tweak by the Bank of Japan BOJ at this month39;s monetary policy meeting.

Investors were laserfocused on U.S. inflation data due later on Wednesday, with expectations for core consumer prices to have risen 5 on an annual basis in June and for the figures to provide further clarity on the Federal Reserve39;s progress in its fight against inflation.

Ahead of the release, the U.S. dollar fell to a twomonth low of 101.34 against a basket of currencies , extending its losses from the beginning of the week after Fed officials said the central bank was nearing the end of its monetary policy tightening cycle.

Against the yen, the dollar tumbled as much 0.7 to a onemonth low , while the euro hit a twomonth peak of 1.10365.

We39;re already seeing markets move in anticipation of a softer U.S. inflation report, said Matt Simpson, senior market analyst at City Index. That runs the risk of a 39;buy the rumour, sell the fact39; reaction if the figures come in around expectations.

Sterling similarly peaked at a 15month high of 1.2970, bolstered by bets the BoE will have…