The pound weakened the most in more than a month against the euro as European Central Bank President Mario Draghi raised forecasts for euro-area growth this year, boosting the relative allure of the shared currency.
U.K. 10-year bonds fell with German bunds. The pound depreciated against most of its 16 major peers, declining most against the Australian dollar, as the Bank of England kept interest rates at a record low. Policy makers held their bond-purchase stimulus target at 375 billion pounds ($628 billion) and said they would reinvest 8.1 billion pounds of funds related to the plan starting March 10.
“This is a pure euro story,” said Lee McDarby, executive director of U.K. corporate foreign-exchange sales at Nomura International Plc in London. “It certainly seems that sterling is an innocent bystander in this afternoon’s market volatility.”
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