Pound Falls Versus Dollar as U.K. Housing Market Loses Momentum

By Anna Rascouet

Jan. 12 (Bloomberg) -- The pound fell against the dollar after a report showed Britain’s property market unexpectedly lost momentum in December.

The pound also traded near its lowest level in two weeks against the euro after the Royal Institution of Chartered Surveyors said the number of real-estate agents who reported increases in house prices exceeded those reporting declines by 30 percentage points, down from 35 in November. Economists predicted 37 points, according to the median of 14 forecasts in a Bloomberg News survey.

“The pound opened on the soft side this morning,” said Jeremy Stretch, a senior currency strategist at Rabobank International. “People are wary. The housing data is looking soft as well.”

Sterling fell to $1.6093 as of 8:42 a.m. in London, from $1.6115 yesterday. It was little changed at 90.02 pence per euro, down from 90.06.

To contact the reporter on this story: Anna Rascouet in London at arascouet@bloomberg.net