Bloomberg News

Pound Set for Weekly Drop Versus Dollar Before U.S. Jobs Report

March 08, 2013

The pound was poised for a fourth weekly decline versus the dollar as demand for the U.S. currency increased before a report that economist said will show American employers added more jobs in February.

Sterling dropped to a 2 1/2-year low against the greenback yesterday. The U.K. currency snapped a three-day decline versus the euro. The Bank of England yesterday left its asset-purchase target at 375 billion pounds ($562 billion). The Debt Management Office is scheduled to auction 4 billion pounds of one-, three- and six-month bills today.

The pound fell 0.1 percent to $1.4995 at 7:51 a.m. London time after sliding to $1.4967 yesterday, the weakest level since July 2010. It has depreciated 0.3 percent this week. Sterling was little changed at 87.27 pence per euro.

The pound has dropped 6.1 percent this year, the second- worst performer after the yen among 10 developed-market currencies tracked by Bloomberg Correlation-Weighted Indexes. The euro rose 1.8 percent and the dollar gained 2.7 percent.

U.K. government bonds lost 1.4 percent this year through March 1, according to indexes compiled by Bloomberg and the European Federation of Financial Analysts Societies. German bunds and Treasuries both dropped 0.8 percent.

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

To contact the editor responsible for this story: Paul Dobson at pdobson2@bloomberg.net.


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