British pound drops to lowest level ever against the euro

THE NEWS TRIBUNE Published: December 25th, 2007 01:00 AM

T he British pound hit record lows against the euro on Monday for the second straight day, weighed down by falling home prices and expectations that the Bank of England will keep cutting interest rates. The euro rose to 72.710 British pence, compared with the earlier record of 72.350 pence from May 27, 2003. The Bank of England cut its key interest rate a quarter-point to 5.5 percent earlier this month amid fears the fallout from the U.S. subprime crisis would hurt economic growth. The pound also drifted lower against the dollar, to $1.9760 from $1.9828.

Source: thenewstribune.com