Sterling loses 0.7 percent versus US dollar

The UK currency dropped 0.4 percent on Tuesday to €0.6790 versus the euro, while it fell 0.7 percent to $1.9990 against the US dollar and by 0.8 percent to ¥236 in relation to the yen.

It was the first time in over a month and a half that the pound dropped below $2 versus the US dollar.

The declines came after new data showed consumer price inflation down to 1.9 percent in July, well below the 2.3 percent level that was anticipated and below the Bank of England’s target for the first time in over a year, while a separate report has the majority of real estate agents and surveyors expecting that house prices will decline in the next three months.

The New Zealand dollar fell sharply after retail sales growth there declined for the first time in a year and a half, dropping 1.4 percent to $0.7285 against the US dollar and falling 1.5 percent to ¥86.05 versus the yen.

The yen was also stronger versus the dollar and the euro, to ¥118.10 and ¥160.20 respectively, while the euro dropped 0.2 percent against the greenback, to $1.3575.

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