Pound Weakens to 15-Month Low Versus Euro as BOE Rate Bets Fade

The pound slid to a more than 15-month low against the euro on bets a faltering economy will curb the Bank of England’s scope to raise interest rates, while the European Central Bank lifts borrowing costs to tame inflation.

Sterling weakened versus all but one of its 16 major peers tracked by Bloomberg, depreciating the most versus South Korea’s won. U.K. consumer confidence fell more than economists forecast this month and mortgage demand is predicted to drop in the third quarter, reports today showed. Barclays Capital pushed back its forecast for policy makers to increase rates.