Pound Falls Second Week Versus Dollar as King Says Economy Weak
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The pound dropped for a second week against the dollar as Bank of England Governor Mervyn King said the economy was “too weak to be satisfactory,” underpinning bets the central bank will keep monetary policy loose.
Sterling had its biggest weekly decline versus the euro in a month as central bank policy maker David Miles renewed his call for additional asset purchases that tend to devalue a currency. U.S. policy makers this week also sought to ease concern they are moving toward ending quantitative easing. U.K. government bonds fell this week, pushing yields to the highest since October 2011.