U.K. Pound Extends Losses Against Euro, Dollar on Slower Growth

By Lukanyo Mnyanda

Aug. 22 (Bloomberg) -- The U.K. pound extended losses against the euro and dollar after a government report showed economic growth stagnated in the second-quarter.

The U.K. currency dropped 0.6 percent to 79.77 pence per euro by 9:43 a.m. in London, from 79.32 yesterday and 78.70 on Aug. 15. It was at $1.8597, from $1.8661 on Aug. 15, when it slipped to $1.8512, the lowest level since July 2006. The pound should fall to $1.83 by the end of the month, Derrick predicted.

Gross domestic product was unchanged from the previous quarter, the Office for National Statistics said today, compared with a previous estimate for growth of 0.2 percent. Economists had expected a 0.1 percent expansion, according to the median estimate of 34 economists. Growth was 1.4 percent from a year earlier, the weakest since 1992.

To contact the reporters on this story: Lukanyo Mnyanda in London at lmnyanda@bloomberg.net; Andrew MacAskill in London at amacaskill@bloomberg.net