The pound dropped versus 13 of the 16 most-traded currencies after a panel of lawmakers said the Treasury is overestimating economic growth and tax receipts because it doesn't give enough weight to the risk from financial-market turmoil. The Bank of England will cut its main rate a quarter-percentage point to 5 percent on April 10, according to a Bloomberg News survey.
The pound dropped for a second day, to $1.9880 by 9:32 a.m. in London, from $1.9932 at the end of last week. It was little changed at 78.91 pence per euro.
The chances of a quarter-point rate cut at this week's central bank meeting rose to 82 percent today, from as low as 70 percent last week, according to a Credit Suisse Group index of probability