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UK Pound slides

March 8 2013 at 04:36pm

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UKpound

Reuters.

A woman passes by an outdoor advert with an image of the British pound bank note.

London - The pound dropped to the lowest level since July 2010 against the dollar after a US report showed payrolls increased more than economists forecast, underpinning demand for the greenback.

Sterling dropped for a third day against the dollar as the data added to speculation the Federal Reserve will end its asset-purchase program.

Employment in the US rose 236,000 last month after a revised 119,000 gain in January, the Labor Department said.

Economists surveyed by Bloomberg forecast an increase of 165,000.

UK government bonds declined.

The pound fell 0.5 percent to $1.4933 at 2:02 p.m. London time after sliding to $1.4885, the weakest level since July 1, 2010.

Sterling strengthened 0.3 percent to 87.03 pence per euro.

The 10-year gilt yield climbed five basis points, or 0.05 percentage point, to 2.06 percent.

The 1.75 percent bond due in September 2022 declined 0.425, or 4.25 pounds per 1,000-ppund face amount, to 97.325.

U.K. government bonds lost 1.4 percent this year through yesterday, according to indexes compiled by Bloomberg and the European Federation of Financial Analysts Societies. German bunds and Treasuries both dropped 0.8 percent. - Bloomberg News


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