The pound resisted a temporary dip after the PPI data for June came in just short of market expectations to remain at strong levels. The PPI data showed that output prices rose 0.2 pct in June from the previous month, falling back from May's 0.4 pct increase, and by 2.4 pct from the same month a year ago. Input prices rose 0.6 pct from May, down strongly from that month's 1.4 pct rise. The market was looking for monthly rises of 0.3 pct for input prices and by 0.8 pct for output prices. The pound's first reaction was to fall back to about 2.0120 usd from the 2.0135 usd high reached in anticipation of the data, only to rally back to new intraday highs of 2.0150. Analysts attributed the pound's two-way movements to investors' sensitivity to any signs of upstream inflation in the UK economy, which could have longer-term implications for interest rates. "Invariably, with these numbers it is a question of perspective," said Daragh Maher at Calyon. "Rising energy prices are pushing input prices higher, which may embolden hawks nervous of pipeline inflationary pressures," he said. "Yet the relatively modest acceleration in output prices suggests that the Bank of England's concerns on pricing power may have been overdone," Maher added. The BoE raised rates just last week, and market-watchers are attempting to establish whether another hike is due later this year.