Tuesday saw the English pound absorb its sharpest drop in three weeks against the world's reserve currency as a consequence of underwhelming manufacturing information released by the U.K., Bloomberg reports.
The monetary unit also slumped against all of its other top 16 counterparts following the release of data in a British Purchasing Managers' Index, which was more than forecast by economists and analysts. As policy makers with the Bank of England are slated to meet this week, preoccupations are growing about the possibility of the region's capacities to endure a double-dip recession.
"People are less than optimistic on the U.K. at the moment," fixed-income strategist Simon Peck with Royal Bank of Scotland Group Plc in London told Bloomberg on Tuesday. "There's also a policy meeting this week so the time is ripe for more speculation on potential further quantitative easing. What's going on in Cyprus is also helping safe-haven flows and the bid for gilts."
Not since early last month have the pound's losses been as steep as they were on Tuesday against the U.S. dollar.
Though the PMI rose to 48.3 in March after registering at 47.9 in February, the metric remains lower than 50, which indicates contraction, according to Reuters.
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