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Sterling falls as more rate cuts expected Reuters Sterling fell versus the dollar on Friday as investors expect the Bank of England to cut interest rates further next year, denting the currency's yield appeal after it eased monetary policy the previous session. The BoE cut rates on Thursday for the first time in two years which led the pound to fall to its lowest since late September versus the dollar and 55 of 62 analysts polled by Reuters expect at least one more cut by the end of the first quarter [BOE/INT]. "We have felt as though the pound has been vulnerable for some time and the decision to ease monetary policy yesterday -- which not everyone was expecting -- has certainly weighed on it," said Phyllis Papadavid, currency strategist at Societe Generale.
At 0821 GMT, the pound was down 0.1 percent at $2.0239 <GBP=>, near Thursday's two-month low of $2.0179. The euro was steady at 72.15 pence and not far off the all-time high at 72.55 pence <EURGBP=>.
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