BLBG:Pound Declines As Home Prices Fall Amid Weaker Economy
The pound fell against the dollar, extending last week’s decline, after two reports showing weakness in the housing market underlined the fragility of Britain’s economy.
Sterling dropped to a four-week low against the euro after Rightmove Plc said U.K. home sellers may need to lower prices to lure buyers, and Halifax said house prices declined last month. U.K. government bonds advanced after Lloyds Banking Group Plc said a measure of job security dropped to a four-month low.
The pound weakened 0.5 percent to $1.5558 at 9:24 a.m. London time after sliding 0.7 percent last week. Sterling depreciated 0.2 percent to 79.37 pence per euro after falling to 79.46 pence, the weakest since July 9.
Forty-nine percent of potential homebuyers said prices in their area were above a “fair and reasonable” level, Rightmove, the operator of the U.K.’s biggest property website, said in a report. House prices fell 0.6 percent in July from June, when they gained a revised 0.8 percent, according to Halifax.
Ten-year gilt yields dropped six basis points, or 0.06 percentage point, to 1.50 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
