|Published : 17 Oct 2016, 14:22:25|
Sterling falls against euro
Sterling traded below $1.22 on Monday and weakened against the euro, hurt by rising gilt yields and media reports of disagreements between the Chancellor and his cabinet colleagues.
Sterling fell to $1.2172, having lost over 6.0 per cent in the past two weeks.
The euro was up 0.2 per cent at 90.20 pence while trade-weighted sterling was at 73.9, not far from a record low of 73.4 struck last week.
Speculators trimmed their net short bets against the pound in the week to Oct 11.
Traders said the selloff in gilts was hurting sentiment towards the currency. The 10-year UK gilt rose to 1.17 per cent, trading near its highest since the June referendum.
Inflation is expected to rise above 2.0 per cent in 2017 because of a sharp fall in the value of the pound - a 16 per cent tumble to record lows in trade-weighted terms, according to a news agency report.