Pound drops on falling consumer confidence
The pound fell to the lowest level in 2 1/2 years against the dollar after a private report showed confidence among British consumers stayed at the weakest in at least four years, strengthening the case for interest-rate cuts.
The pound also traded near a record low against the euro after Nationwide Building Society said its index of sentiment stayed last month near the lowest since the survey began in May 2004. Britain's services industry shrank last month, adding to evidence the economy is headed toward a recession, separate data showed today.
The pound fell as low as $1.7671, the lowest level since April 2006, and was trading at $1.7712 at 9:47 a.m. in London, from $1.7839 yesterday. The U.K. currency traded at 81.37 pence per euro, after falling yesterday to 81.64 pence, the lowest level since the single currency's debut in 1999.
The pound also traded near a record low against the euro after Nationwide Building Society said its index of sentiment stayed last month near the lowest since the survey began in May 2004. Britain's services industry shrank last month, adding to evidence the economy is headed toward a recession, separate data showed today.
The pound fell as low as $1.7671, the lowest level since April 2006, and was trading at $1.7712 at 9:47 a.m. in London, from $1.7839 yesterday. The U.K. currency traded at 81.37 pence per euro, after falling yesterday to 81.64 pence, the lowest level since the single currency's debut in 1999.