Pimco’s Amey Says U.K. Pound May Decline to $1.37 Under Carney
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The pound may drop to a four-year low of $1.37 during Mark Carney’s tenure at the Bank of England, according to Michael Amey, a money manager at Pacific Investment Management Co. in London.
The incoming governor, who takes over from Mervyn King in July, will want to see the currency decline, so the “clearest trade” is to sell the pound, Amey said in an interview today. A similar move against the euro is unlikely to be achievable because of the common-currency bloc’s “challenges,” he said. The pound has dropped 3 percent this year, the third-worst performer after the yen and the Australian dollar, according to Bloomberg Correlated-Weighted Indexes.