BLBG: Pound May Fall to $1.54, BOE ‘Unconcerned,’ BNP Paribas Says
By David Clarke
Sept. 25 (Bloomberg) -- The pound may fall to $1.54 by the end of the year amid signs the Bank of England is “unconcerned” by the currency’s decline, according to BNP Paribas SA.
“The sterling negative sentiment continues to build,” analysts including Ian Stannard in London said in a research note today. “The Bank of England appears unconcerned by the currency weakness at this stage. We maintain our bearish sterling view, expecting the currency to be the weakest among the majors.”
The pound dropped the most since April versus the dollar yesterday after central bank Governor Mervyn King said its weakness was “very helpful” to the U.K. economy.
The U.K. currency dropped 0.3 percent to $1.6018 as of 12:35 p.m. in London.
