Pound Near $1.50 Underlines Speculation Low Rates to Persist
- U.K. currency declines to lowest since April 23 against dollar
- Bond spreads signal gains may be limited amid jump versus euro
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The pound stayed near the lowest level in seven months, after falling below $1.50, as the newest member of the Bank of England’s Monetary Policy Committee said he’s comfortable with keeping interest rates at a record low.
Even as sterling rallied versus the dollar and climbed for the first time in three days versus the euro, bond markets reflected that outlook for U.K. rates, which may weigh on further gains in the currency. The extra yield, or spread, that investors get for holding two-year Treasury notes instead of U.K. government securities widened to the most since 2006.