Wednesday saw the value of the English pound slide against most of its counterpart currencies in response to a Bank of England report indicating the economy of the U.K. will remain weak, Bloomberg reports.
Central bank governor Mervyn King told a news conference that England's economic system will gradually develop this year and he laid out caveats about what will slow down economic development and growth, according to The Associated Press.
"Although some recent business surveys suggest a brighter picture for activity at the beginning of this year, the fiscal consolidation and tight credit conditions at home, and the weakness of our major overseas trading partners, are acting as a drag on growth," King said during a Wednesday news conference. "The biggest risk to the recovery stems from developments in the euro area."
For a second-straight trading session, the pound endured losses to all but two rival currencies. Its largest losses were to the Australian and New Zealand dollars.
On Wednesday the pound came within a half-cent of its lowest value in 14 days to the U.S. dollar amid economic data indicating U.K. unemployment claims climbed higher than economists projected in January.
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