Pound Drops to Lowest Since August 2013 vs. Dollar

The Great Britain pound sank today, reaching the lowest level since August 2013 against the US dollar, as UK manufacturing slowed unexpectedly by the end of the year. The data suggested that the nation’s central bank will not be in a hurry to start raising interest rates.

The seasonally adjusted Markit/CIPS manufacturing Purchasing Managers’ Index dropped from 53.3 in October to 52.5 in December. Market participants counted on an increase to 53.7. The report added to speculations that Bank of England will postpone an interest rate hike until economic recovery becomes more stable.

GBP/USD sank from 1.5544 to 1.5413 (1.1 percent) as of 14:06 GMT today. GBP/JPY dropped from 187.14 to 185.98.

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