Pound Drops to 8-Month Low Versus Euro as U.K. House Prices Fall
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The pound weakened to the lowest level in nearly eight months against the euro as a report showed house prices fell for a sixth month in December, strengthening the case for the Bank of England to expand its stimulus.
Sterling dropped to the lowest level in more than a week versus the dollar. Home prices in England and Wales slipped 0.1 percent, the same as in November, Hometrack Ltd. said today. Values are forecast to fall 1 percent next year after a 0.3 percent decline in 2012, the London-based property research group said. The Bank of England decided last month to halt its 375-billion pound ($606 billion) asset-purchase program, known as quantitative easing, designed to boost the economy.