Pound Declines as Majority of U.K. Manufacturers See Contraction

The pound fell for the first time in four days against the dollar as a report showed the majority of U.K. manufacturers are seeing orders decline.

Sterling weakened against 12 of its 16 major peers amid bets the central bank will resume asset-purchases under its program of so-called quantitative easing. A gauge of manufacturing orders rose to minus 12 from minus 21 in November, the Confederation of British Industry said.

The pound depreciated 0.2 percent to $1.6122 at 11:39 a.m. London time after rising to $1.6172 yesterday, the strongest level since Nov. 1. The currency was little changed at 81 pence per euro, after depreciating for two days.

The 10-year gilt yield fell one basis point, or 0.01 percentage point, to 1.82 percent.

To contact the reporter on this story: Lukanyo Mnyanda in Edinburgh at lmnyanda@bloomberg.net

To contact the editor responsible for this story: Nicholas Reynolds at nreynolds2@bloomberg.net

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