Pound Drops to Lowest Since July 2010 on Ratings Cut, King

The pound dropped for a second week against the dollar after Moody’s Investors Service cut the U.K.’s AAA credit rating and Bank of England Governor Mervyn King’s indicated he backed more economic stimulus.

Sterling declined to the lowest since July 2010 against the U.S. currency after Moody’s cut the U.K.’s rating one level to Aa1 and the minutes of the Monetary Policy Committee meeting, published on Feb. 20, showed that King voted to increase the central bank’s target for bond purchases to boost Britain’s economy. The Federal Reserve signalled it may slow the pace of its own asset-buying program.