The pound dropped below $1.60 for the first time in five weeks on speculation Bank of England officials meeting this week will signal they may introduce additional stimulus as the economy struggles to recover.
Analysts comment on 159 billion euros ($229 billion) of new aid for Greece announced by euro- area leaders late yesterday. Officials also empowered their 440- billion euro rescue fund to buy debt across stressed euro nations, aid troubled banks and offer credit-lines to repel speculators. The comments were collected from reports published by banks today.
The extra yield investors demand to hold the bonds of so-called peripheral European nations instead of German bonds increased as signs the economic recovery may be slowing added to the appeal of the safest fixed-income assets.