Sterling falls 1 pct vs dlr as high-yielders tumble

Mon Dec 1, 2008 9:22am GMT
 
Email | Print | | Single Page
[-] Text [+]

* Stg falls 1.4 pct vs dlr <GBP=>, euro up 1 pct <EURGBP=>

* Pound tumbles along with other high-yielders

* UK mortgage lending, manufacturing PMI data at 0930 eyed

* BoE seen cutting interest rates further on Thursday

LONDON, Dec 1 (Reuters) - The pound fell over 1 percent against the dollar and the euro on Monday, buckling along with other higher-yielding currencies as investors anticipated another round of central bank monetary easing this week.

Jittery investors also awaited the release of UK mortgage lending and manufacturing activity data, which were expected to provide yet more gloomy indications on the state of the economy.

Economists polled by Reuters expect the Bank of England to follow up November's shock 150 basis point rate cut with at least a 50 basis point reduction on Thursday (For details of poll please double click on [BOE/INT])

Lower interest rates would curb sterling's yield appeal, but central bankers hope that they will help the troubled economy.

The Australian and New Zealand central banks also give their latest verdict on rates this week along with the European Central Bank.  Continued...

 
Currency
US $ inGBP =0.6549
Euro inGBP =0.8967
¥en inGBP =0.0072

Most Popular on Reuters UK

  • Articles
  • Videos