Pound Near 5-Month Low Versus Euro; Gilts Drop on Weale Comment
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The pound stayed near its weakest level in five months against the euro and slipped against the dollar after data showed the U.K. economy shrank.
Sterling is the worst-performing currency this month against a basket of 10 developed-market counterparts. Gross domestic product fell 0.5 percent from the previous three months, the Office for National Statistics said today, near an earlier estimate of 0.6 percent. Gilts declined as Bank of England policy maker Martin Weale, who has dissented from the majority of his peers in recent monetary-policy votes, said the central bank should raise interest rates to counter inflation.