Sterling falls to 2011 low vs currency basket

LONDON: Sterling fell to its lowest in 2011 against a basket of currencies on Monday as the pound came under broad selling pressure, falling to a two-month low against the dollar and a five month low versus the euro.

Sterling's trade-weighted index fell as low as 79.1, its weakest since late December.

The UK currency fell as low as $1.5944 against the dollar, its weakest since late January, while the euro rose to 88.19 pence, its strongest since late October 2010.

The pound has been under pressure as concerns about a fragile UK economy have dented expectations for UK interest rate hikes. Traders said its falls on Monday were exacerbated by selling in the pound against the Australian dollar related to insurance payments for Queensland flood damage.