Pound Falls Most in Three Weeks Versus Dollar as Output Declines

The pound fell the most in three weeks against the dollar after an industry report showed U.K. manufacturing output shrank more than economists forecast, adding to concern the nation is headed for another recession.

The U.K. currency declined versus all 16 of its major counterparts on speculation the slowdown signs will convince the Bank of England to increase stimulus at a policy meeting this week. Minutes of its last two gatherings showed three members of the Monetary Policy Committee voted to increase the asset-purchase target from 375 billion pounds ($568 billion). U.K. government bonds were little changed.