Pound Reaches Six-Week Low Versus Euro as Construction Declines
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The pound depreciated against the euro, reaching its weakest level in six weeks, as a report showed U.K. construction output unexpectedly dropped in August.
Sterling erased a gain versus the dollar even amid optimism U.S. lawmakers will reach an agreement on raising the nation’s debt limit to avert a default. Construction slipped 0.1 percent from July compared with a 0.8 percent gain forecast by economists. The Bank of England yesterday kept its benchmark interest rate at a record-low 0.5 percent and maintained its bond-buying target at 375 billion pounds ($599 billion). U.K. government bonds advanced.