LONDON: Sterling extended losses, hitting an eight-month low against the dollar and a 2-1/2 year low against the yen on Wednesday while gilts rose after Bank of England minutes showed policymakers stood ready to pump more money into the UK economy while data showed UK public borrowing at a record August high.
The pound had risen briefly because Adam Posen was still the only member voting for more quantitative easing but soon pushed lower due to the dovish tone of the minutes and on selling by a UK clearer, traders said.
Sterling fell to an eight-month low of $1.5613 against the dollar, down from $1.5687 before the minutes were released. The euro rose to the day's high of 87.42 pence from around 87.06 pence beforehand, having briefly dropped to a session low of 86.89 pence.
The pound fell to 119.24 yen, its weakest since January 2009.
UK December gilt futures turned positive after the BoE minutes to stand around 15 ticks higher on the day, having been 12 ticks down before the release.
Copyright Reuters, 2011
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