The British pound fell today after Bank of England Governor Mervyn King said the U.K. economy still faces Ã¢â‚¬Å“profound challenges,Ã¢â‚¬Â fueling speculation the bank may extend asset purchases as the recession persists.
The pound fell 0.2 percent to $1.6576 as of 1:14 p.m. in London after earlier falling as much as 0.7 percent. Sterling weakened 0.6 percent to 146.82 yen. It slid 0.2 percent to 90.32 pence per euro, headed for a fifth straight loss, the longest streak since Sept. 18.
Ã¢â‚¬Å“On growth they are a bit more upbeat but they still think it is too early to close the door on further easing if it is necessary,Ã¢â‚¬Â said Henrik Gullberg, a strategist in London at Deutsche Bank AG, the worldÃ¢â‚¬â„¢s biggest currency trader. The possibility of other asset purchases Ã¢â‚¬Å“has had a negative impact on sterling.Ã¢â‚¬Â
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