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Pound falls to 80p against
the euro
Julia Kollewe
London
Guardian
Wednesday, April 9, 2008
Sterling bounced back this morning after hitting a record low
of 80p against the euro earlier, with stronger-than-expected industrial
production figures denting hopes of a half-point reduction in
interest rates tomorrow.
Economists expect, on balance, a 25 basis point rate cut from
the Bank of England when it concludes its two-day meeting at lunchtime
tomorrow, and the relatively strong output data reduced the chances
of a bigger move.
Industrial production increased by 0.3% in February, three times
as much as predicted by City economists. Manufacturing output
was also higher-than-expected, and climbed 0.4% between January
and February. Sterling rose to $1.9717 on the news, from $1.9684
before the figures were released.
(Article continues below)
Earlier, sterling fell to a record low of 80p against the euro
after a slump in consumer confidence added to a gloomy picture
of the economy and boosted expectations of rate cuts.
Sterling recovered to 79.70p after the industrial output data.
"They are pretty good figures, it's a bit of a surprise.
It's quite clear that manufacturers are dealing with how strong
sterling has become versus the dollar for now," said Neil
Mellor, currency strategist at Bank of New York Mellon.
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INFOWARS:
BECAUSE THERE'S A WAR ON FOR YOUR MIND
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