Pound Falls against Euro


The pound fell to a record of 80 pence per euro after U.K. consumer confidence slid to the lowest level in almost four years, boosting speculation the Bank of England will cut interest rates tomorrow.

Britain's currency also declined to a six-week low versus the dollar after Nationwide Building Society said today its confidence index declined 1 point to 77, the least since it began publishing the monthly gauge in May 2004. The Bank of England will lower its main rate a quarter-point to 5 percent, according to 51 of 61 economists surveyed by Bloomberg News.

The pound dropped to 80.01 pence per euro, the lowest level since the 15-nation currency's 1999 inception, and was at 79.94 pence by 8:33 a.m. in London, from 79.77 pence yesterday. It has declined almost 9 percent versus the European common currency this year. Britain's currency also fell 0.2 percent to $1.9650, the lowest level since Feb. 26, before trading at $1.9671.

The index of consumer confidence by Britain's fourth-biggest mortgage lender is based on a survey of 1,204 people conducted by Taylor Nelson Sofres between Feb. 18 and March 20.


TradingEconomics.com, Bloomberg
4/9/2008 6:46:23 AM