Pound Falls 2nd Day Versus Dollar Before BOE Minutes; Gilts Rise The pound fell for a second day against the dollar before the Bank of England publishes the minutes of its most recent meeting. The U.K. currency was little changed versus the euro after a report showed U.K. home sellers raised asking prices to a record. Benchmark 10-year gilts rose, pushing the yield to within three basis points of the lowest in almost four weeks. The central bank minutes, due on July 17, will reveal how policy makers voted at Governor Mark Carney’s first gathering. The pound slid 0.2 percent to $1.5073 at 9:22 a.m. London time after declining to $1.4814 on July 9, the lowest level since June 2010. The U.K. currency was at 86.61 pence per euro. It reached 86.94 pence on July 11, the weakest since March 13. Home prices sought climbed for a seventh month, increasing 0.3 percent to an average 253,658 pounds ($383,300), London-based property-website operator Rightmove Plc said. The yield on 10-year gilts fell one basis point, or 0.01 percentage point, to 2.32 percent. It reached 2.29 percent on July 12, the least since June 20. The 1.75 percent security due September 2022 rose 0.1, or 1 pound per 1,000-pound face amount, to 95.36. Two-year yields were little changed at 0.36 percent. The U.K. economy will expand 1.1 percent this year, compared with an April forecast of 0.6 percent, the Ernst & Young Item Club said in a report to be published tomorrow. Growth will strengthen to 2.2 percent next year and 2.6 percent in 2015, both faster than previous estimates, it said. The pound has weakened 2.3 percent this year, according to Bloomberg Correlation-Weighted Indexes, which track 10 developed-nation currencies. The dollar rose 6.3 percent and the euro gained 5 percent. Gilts handed investors a loss of 2.5 percent this year through July 12, according to Bloomberg World Bond Indexes. German bonds declined 0.8 percent and Treasuries fell 2.7 percent.
Posted on: Mon, 15 Jul 2013 08:42:57 +0000
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