Pound Falls to Four-Week Low Versus Euro After Factory Report
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The pound dropped to a four-week low against the euro after a gauge of U.K. manufacturing stayed near the lowest in 10 months, adding to concern the economy is struggling to recover.
Sterling dropped versus all except two of its 16 major counterparts after Bank of England Governor Mervyn King told a parliamentary commission that the uncertainty of regulatory fines levied on British lenders was weighing on their ability to raise finance. U.K. government bonds were little changed as the Debt Management Office sold 3.25 billion pounds ($5.18 billion) of index-linked bonds though banks.