The pound fell against the dollar as falling stock markets sapped demand for riskier assets denominated in the British currency. Sterling was weaker against 12 of its 16 major peers tracked by Bloomberg. The MSCI Asia Pacific Index of shares was 1 percent lower, its biggest drop in more than two weeks, while futures on the Euro Stoxx 50 lost 0.6 percent. U.K. retail sales fell by 1.4 percent in June, the British Retail Consortium will say tomorrow, according to the median estimate of six economists in a Bloomberg survey. Consumer-price inflation stayed at the fastest pace since October 2008, a separate survey showed before the data is published tomorrow. The pound fell 0.6 percent to $1.5962 as of 7:49 a.m. in London. It weakened 0.4 percent to 128.99 yen and was little changed at 88.79 pence per euro. To contact the reporter on this story: Matthew Brown in London at mbrown42@bloomberg.net To contact the editor responsible for this story: Daniel Tilles at dtilles@bloomberg.net

Source