Pound Falls to Six-Month Low Against Euro

Speculation that the Bank of England will resist interest rates for several more months even as the European Central Bank hikes rates has pushed sterling to a six-month low against the euro. The pound was little changed at 88.98 pence per euro at 1:06 p.m. in London after reaching 89.24 pence, the weakest since Oct. 25. It was 0.2 percent stronger at $1.6288. Sterling declined yesterday to $1.6227, the weakest level since March 5.

“The BOE will sit tight until August at least,” said John Hydeskov, chief analyst at Danske Bank A/S in London, who lowered his three-month pound forecast against the euro to 92 pence from 89 pence today. “I’m still on the bearish side in terms of U.K. data and the pound will continue to slide.”

Source: Bloomberg

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