LONDON, Aug 16 Reuters The pound was on track for its biggest oneday gain in almost two weeks on Wednesday after data showed British core inflation stayed strong in July, while the yuan slipped to a ninemonth trough as concerns mounted about the extent of China39;s slowdown.

The yen was weak, hovering in an intervention zone that last year triggered intervention, but the New Zealand dollar was supported after the central bank raised the prospect of a slight delay to when it would start to cut borrowing costs.

The pound hit a high of 1.2768 and was last up around 0.3 at 1.2741, set for its biggest oneday jump since Aug. 4.

Core inflation in Britain, which strips out volatile energy and food prices, remained at 6.9 in July, flat versus the June reading, and higher than expectations in a Reuters poll for a reading of 6.8.

With inflation still exceeding the Bank of England39;s 2 target, the central bank is expected to raise rates further even at the risk of hurting growth, analysts said.

Core inflation and services inflation are too high. It all indicates that the Bank of England will have to move rates higher in September, said Niels Christensen, chief analyst at Nordea.

I39;m surprised it sterling hasn39;t gained more ground. The market is locked between hike expectations supporting sterling and fear of a weaker economy weighing on sterling.

CHINA WORRIES MOUNT

In Asia, the yuan touched its lowest level since November in both the onshore and offshore markets,…