The English pound on Thursday was pinched against the U.S. dollar by surprise economic developments on either side of the Atlantic – weaker than forecast economic data issued by the U.K. and the U.S. Federal Reserve opting against tapering monetary stimulus measures, Bloomberg reports.
After two days of policy meetings, the Fed defied widespread expectations and did not reduce economy-spurring measures. Retail sales fell last month in the region, also tugging down the currency that had touched its highest value in eight months against the dollar during the Wednesday trade session.
From July to August, retail sales edged down 0.9 percent, according to the Office for National Statistics. Economists polled by the news service projected gains of 0.4 percent.
The English pound's losses on Thursday against the world's reserve currency were as much as 0.5 percent, which notates the biggest losses since August 22.
The Bank of England is pondering the release of plastic banknotes, according to Reuters. The central banks of Australia and Canada already have moved away from issuing paper banknotes, which could influence the central bank of England to do the same.
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