The pound dropped to a five-month low against the euro and lost ground against the dollar this week as traders took comments from Mervyn King, governor of the Bank of England, as a green light to sell sterling.
Mr King said sterling’s fall was “helpful” in rebalancing the UK to be more focused on exports, in reports published on Thursday. “The fall in the exchange rate that we have seen will be helpful, but there’s no doubt that we need to see a shift of resources into net exports that compete with imports and help to reduce the trade deficit,” he said.
