Pound plunges to new multi-week low against euro

Sterling declined to a new multi-week low against the euro and 5-day lows versus the dollar today after the UK's CIPS/Markit Purchasing Managers' Index, or PMI, for the construction sector fell to 38.3 in June from 43.9 in May, while consensus forecast was 43.1.

According to the latest report from the Markit Economics, the current decline is the sharpest since the survey began in April 1997.The report showed that the input price index recorded its highest-ever reading of 81.5 in June, up sharply from 72.6 in May.

UK housing equity withdrawals totaled GBP5.04 billion in the first quarter, a report from Bank of England showed today. Economists had expected equity withdrawals to fall to GBP5.3 billion. The BoE revised fourth quarter housing equity withdrawals to GBP7.4 billion from GBP7.3 billion.

The British pound that showed strength against the US dollar in Asian trading on Wednesday declined in early European deals. At 10:00 am BST, the pound touched a 5-day low of 1.9854 against the dollar, down from a recent high of 1.9977. The pair was worth 1.9952 at yesterday's close.

Against the European single currency, the British pound traded lower in early deals on Wednesday. At about 10:35 am BST, the sterling touched a new multi-week low of 0.7972, compared to 0.7918 hit late New York Tuesday. Currently, the euro-pound pair is trading at 0.7956.