BLBG: Pound Declines Against Euro as Stocks Drop, Unemployment Rises
June 17 (Bloomberg) -- The pound dropped against the euro by the most in more than a week as stocks retreated and a government report showed U.K. unemployment rose in May for a third month.
The pound fell for a third time in four days versus the dollar after minutes showed Bank of England policy makers voted unanimously to continue their asset-purchasing program this month, saying it was too early to know if the measures designed to lower borrowing costs are working. Claims for U.K. jobless benefits rose by 39,300 to 1.54 million, the Office for National Statistics said today. The benchmark FTSE 100 Index of equities slipped to the lowest level since May 5.
“Equity markets have come off somewhat and that’s impacting on the pound,” said Ian Stannard, a currency strategist in London at BNP Paribas SA.
The pound weakened 1 percent to 85.17 pence per euro by 10:30 a.m. in London, its steepest intraday decline since June 5. It depreciated 0.8 percent to $1.6286.
