British pound fell on Monday for the second day in a row against the US dollar, reaching the lowest level in more than two weeks, as the Debt Management Office intended to sell UK government bonds with maturity in 2068 via banks this week.
Pound lost ground for the first time in three days versus the euro. The yield on domestic 10-year gilts rose the most since January 2009 last week, after Federal Reserve Bank Chairman Ben Bernanke stated on June 19th, that asset purchases could be reduced by this years end and completely terminated in the middle of 2014.
GBP/USD erased 0.43% to 1.5358 at 8:09 GMT, after sliding to a session low at 1.5347 minutes earlier, the lowest value since June 5th. Support was expected at June 5th low, 1.5290, while the pair was likely to meet resistance at current session high, 1.5409. Meanwhile, Sterling depreciated by 0.2% against the euro, as EUR/GBP cross rose to 85.27.
British currency has added 4.2% in the past three months, according to Bloomberg Correlation-Weighted Indexes, which track 10 developed-market currencies. The euro gained 4.2% as well, while the US dollar climbed by 3.2%.
UK gilts provided investors with a loss of 3.6% this year as of June 21st.
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