Sterling slipped against the dollar and the euro on Tuesday as an increase in Britain's tax levy on banks dented investor sentiment towards the UK and triggered stop-loss orders. Britain slapped an extra 800 million pound ($1.3 billion) tax on banks, taking a harder line on the sector as it negotiates a deal to curb bonuses and free up business lending.
The government said on Tuesday it will impose the full amount of a planned levy on bank balance sheets this year, instead of phasing it in. Sterling traded down around 0.5 percent against the dollar at $1.6035, off earlier highs of $1.6163. Traders said stop-loss orders had been triggered on the break of $1.6080 and $1.6050. The euro rose around 0.8 percent against the pound to 85.02 pence, moving back above its 200-day moving average at 84.53 and triggering stop-losses on the break of 84.80.
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