Sterling hits 13-month low vs euro after UK services PMI

LONDON: Sterling hit a 13-month low versus the euro on Thursday after a weaker-than-expected reading of the UK services sector bolstered the argument that UK interest rates will stay low for much of the year.

The Markit/CIPS headline services PMI index eased to 54.3 in April from 57.1 in March, staying in positive territory for a fourth straight month, but undershooting the 55.7 forecast.

The euro rose around 30 pips to 90.41 pence after the data, its highest since late March 2010.

Sterling scraped a session low of $1.6446, compared with around $1.6495 before the data.