Bloomberg News

Pound Approaches 10-Day Low Versus Euro Before Budget Gap Report

June 21, 2011

June 21 (Bloomberg) -- The pound neared the weakest level in more than a week against the euro before data forecast to show the U.K. budget gap widened in May.

Net borrowing rose to 16.5 billion pounds ($27.6 billion) from 7.7 billion pounds in April, according to the median estimate of nine economists surveyed by Bloomberg News. The U.K. plans to auction 4.75 billion pounds of 2 percent notes maturing in January 2016 today.

The pound depreciated 0.2 percent to 88.50 pence per euro as of 7:34 a.m. in London. It reached 88.55 pence on June 17, the weakest since June 10. Sterling climbed 0.2 percent to $1.6234 and was little changed at 130.14 yen.

Stocks gained, with the MSCI Asia Pacific Index adding 1.3 percent, the most since May 31. Futures on the FTSE 100 Index of U.K. shares gained 0.5 percent.

--Editors: Matthew Brown, Mark McCord

To contact the reporter on this story: Lucy Meakin in London at lmeakin1@bloomberg.net.

To contact the editor responsible for this story: Daniel Tilles at dtilles@bloomberg.net.


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