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Sterling falls after UK public finances show bigger deficit
May 22, 2014 / 8:52 AM / 4 years ago

Sterling falls after UK public finances show bigger deficit

LONDON (Reuters) - Sterling fell against the dollar and the euro on Thursday after UK data showed a bigger-than-expected fiscal deficit, prompting some investors to take profits in the pound’s recent rally to 5-1/2 year highs.

A sample polymer ten GB pound banknote is seen on display at the Bank of England in London September 10, 2013. REUTERS/Chris Ratcliffe/pool

Sterling fell to a session low of $1.6870 after the data was released from around $1.6909 beforehand.

The euro pulled further away from a 17-month low of 80.85 pence, to trade at 81.06 pence, up 0.1 percent on the day.

Better-than-expected UK data and indications that some members of the Bank of England’s monetary policy committee were veering towards an interest rate hike saw the pound hit its highest since late 2008 against a trade-weighted basket of currencies on Wednesday..

Separately published data on Thursday confirmed UK gross domestic product between January and March grew by 0.8 percent compared to the last three months of 2013.

Reporting by Anirban Nag; editing by Patrick Graham

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