Pound Slides as Moody’s Says U.K. Rating at Risk; Gilts Advance
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The pound dropped the most in a month against the dollar after Moody’s Investors Service said the U.K. risks losing its top-grade credit rating should the economy deteriorate.
Sterling weakened versus 12 of its 16 major counterparts after the rating company said late yesterday the change to a “negative outlook” for Britain’s Aaa rated debt was a “weaker macroeconomic environment.” The currency extended losses against the euro after a German report showed investor confidence improved to a 10-month high. Gilts rose.