UK pound falls to lowest in 10 months as retail sales drop

July 19, 2018 - 5:56 am

LONDON (AP) — The British pound has fallen below $1.30 for the first time in ten months after disappointing retail sales news raised further questions over whether the Bank of England will raise interest rates next month.

In midday trading Thursday, the pound was down 0.6 percent at $1.2992.

Over the past few weeks, the pound has fallen from around the $1.40 mark largely because of growing concerns over Britain's upcoming exit from the European Union.

Though Brexit concerns remain, the pound has been further battered this week by soft economic data that has reined in expectations of a quarter-point rate hike from the Bank of England on Aug. 2.

News that retail sales fell a monthly 0.5 percent in June reinforced perceptions that an August rate hike is not a done deal.

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