Pound Falls to 6-Month Low Versus Dollar Before BOE Data
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The pound fell for a second day versus the euro on speculation the Bank of England will cut its growth forecasts in its quarterly Inflation Report tomorrow, underlining the case for keeping interest rates at a record low.
The U.K. currency reached the weakest level in six months against the dollar even as a report showed the U.K. inflation rate stayed at the highest since May. Sterling slumped the most in eight months against the yen after a Group-of-Seven official said the world’s major industrial nations are concerned about excessive moves in Japan’s currency. A gauge of volatility on the pound versus the euro climbed to a seven-month high. U.K. government bonds were little changed.