Pound slips on central bank’s post-Brexit stimulus
Sterling fell for its fifth day after the central bank last week voted to reduce rates to a record low 0.25 percent, cutting borrowing costs for the first time in more than seven years.
The central bank also announced £170-billion ($221-billion, 199-billion-euro) stimulus package, which it added could be expanded further.
The aggressive moves come in response to fears that Britain’s vote in June to quit the European Union would hammer the economy.
The pound tumbled to 30-year lows in the aftermath of the shock referendum result.
In Tokyo on Tuesday, the unit bought $1.2998 after earlier touching $1.2978, its lowest since mid July. It was at $1.3040 in New York on Wednesday.
“We could see some short-term weakness in the pound,” Janu Chan, a senior economist in Sydney at St. George Bank, told Bloomberg News.
“It was an extensive stimulus program that the BoE announced.
“The economy has been hit in the short-term, and could face a minor recession.”
In other trading, the dollar edged lower to 102.34 yen from 102.49 yen.
The euro fetched $1.1085 against $1.1076 and 113.45 yen from 113.56 yen.
Despite edging down Tuesday, the dollar has been winning support as upbeat jobs data on Friday boosted hopes for a US interest rate hike this year.
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