The British pound extended its one-week decline on speculation the UK banking sector is still fragile.  The sterling started to fall a week ago on dovish comments from BoE Governor Mervyn who said he would consider rate cuts on commercial banks' reserves held at the Central Bank.  The news raised speculation that the BoE may continue to extend its 175B pound quantitative easing program.  Speculation that Lloyds Banking Group, UK's biggest mortgage lender, needs to raise more capital, and news that UK public sector finances were at its worst for an August on record hurt the sterling further. Meanwhile, UK jobless rate is at the highest since November 1996 at 7.9%, while retail sales and manufacturing orders remain weak, suggesting a fragile economy.  Today, data from property website Rightmove showed asking prices for homes in England and Wales were on average 1.5 percent lower this month than a year ago.  Interest rates are expected to remain steady at the next monetary policy meeting.