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Pound Weakens as Bets on Higher Interest Rates Wane; Gilts Fall
The pound fell for a second day against the dollar, after reaching a nine-month high this week, amid speculation the U.K. economic recovery isn’t strong enough to warrant an early interest-rate increase. Britain’s currency weakened versus all of its 16 major counterparts as Bank of America Merrill Lynch said its recent strength “is likely to subside.” Bank of England policy makers, who meet next week, have said they will keep interest rates at a record low at least until unemployment drops to 7 percent. The rate was 7.7 percent in the second quarter. U.K. government bonds declined. “Some of the momentum in ... (full story)
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