The pound weakened against the euro as an index of sales volumes at U.K. consumer-services companies, including hotels and restaurants, fell to the lowest since November 2009. Britain’s currency fell against most of its 16 major counterparts, losing most against New Zealand’s dollar. A gauge of consumer-services companies dropped to minus 23 in the three months through May from minus 11 in the quarter through February, the Confederation of British Industry said today. The Bank of England left borrowing costs at a record low of 0.5 percent this month because some policy makers said an increase in interest rates might hurt consumer confidence. “The weak fundamentals in the pound have been reaffirmed this week by the data,” said Jane Foley, a senior currency strategist at Rabobank International in London. “The BOE is quite worried about consumption and consumer confidence. The mechanics of the voting suggest that it’s not going to raise rates for some time.” Sterling was 0.5 percent weaker at 87.01 pence as of 9:43 a.m. in London. It appreciated 0.1 percent against the dollar at $1.6288 and was little changed at at 133.39 yen. Bank of England Deputy Governor Paul Tucker is scheduled to speak later today in London. The pound strengthened against the dollar and the euro yesterday as a report showed U.K. exports helped the economy resume growth in the first quarter, outweighing the biggest slump in consumer spending in almost two years. U.K. government bonds fell, pushing the yield on the 10- year gilt up one basis point to 3.34 percent. Two-year note yields rose one basis point to 0.94 percent. To contact the reporter on this story: Emma Charlton in London at echarlton1@bloomberg.net To contact the editor responsible for this story: Daniel Tilles at dtilles@bloomberg.net

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