The British pound appreciated vis-à-vis the U.S. dollar today as cable tested offers around the US$ 1.3345 level and was supported around the $1.3110 level. Bank of England Deputy Governor Gieve reported the U.K. economy will suffer its worst pullback in decades in 2009. Gieve added The authorities both here and overseas need to consider whether further action on interest rates (or other monetary measures) or fiscal action is required. They need also to consider whether to do more to underpin the confidence among banks and among investors that is necessary to support the lending the economy needs to emerge from recession. The U.K. government may announce new plans next week to enhance bank lending measures. U.K. bids are cited around the US$ 1.4590 level. The euro gained ground vis-à-vis the British pound as the single currency tested offers around the ₤0.9010 level and was supported around the ₤0.8845 level.
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