Sterling drops 0.5 percent to euro

Sterling was lower in midday trade in New York Tuesday, dropping 0.3 percent versus the US dollar to $1.9805, while it had dropped 0.5 percent to £0.6810 in relation to the euro and was 0.8 percent lower against the yen, to ¥226.50.

The declines came on concerns that trouble in the US subprime mortgage sector are starting to affect UK intersts after it became known that the Bank of England had made emergency loans of £314 million at a rate of 6.75 percent, while one UK hedge fund had to sell assets when it couldn’t borrow money in the commercial market and another said that its profits had been impacted.

Elsewhere, the yen strengthened, adding 0.3 percent to ¥154.30 against the euro and gaining 0.4 percent to ¥114.40 versus the greenback.

At the same time, the US dollar was down 0.1 percent to $1.3490 versus the euro.

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