Pound Has Steepest Weekly Drop Since June on Retail Sales
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The pound had its steepest weekly drop versus the dollar since June after data showed U.K. retail sales unexpectedly fell in January, adding to evidence the economic recovery is faltering.
Sterling slid to the lowest level in six months against the greenback. It lost at least 0.7 percent this week against all 16 of its major peers tracked by Bloomberg after the Bank of England released its quarterly Inflation Report two days ago and Governor Mervyn King said Britain faced a muted recovery. Britain’s currency trimmed its decline since Feb. 8 as better-than-forecast U.S. manufacturing data boosted optimism that global growth is on track. Gilts were little changed.