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The pound fell to $1.6056, its lowest since September 11. Traders said demand from hedge funds to buy euros against the pound helped push it lower, with stop loss sell orders triggered on the break below $1.6065. More stops were expected below $1.6040.
UK finance minister George Osborne will on Monday confirm plans to cut welfare spending with the fiscal austerity programme likely to extend further. That would pile pressure on the Bank of England to ease monetary policy perhaps as early as next month.