Sterling fell against the dollar and euro on Monday, shrugging off a robust housing market survey, with sentiment staying heavy due a recent run of poor data and expectations for the UK economy to slow further.
Asking prices for property in England and Wales hit a record high in May and house price inflation accelerated, a survey from property website Rightmove showed, despite expectations for a much weaker housing market this year. Economists are predicting falls in house prices of about 10 percent this year and Bank of England policymaker David Blanchflower has warned prices could dive by about one-third unless aggressive, immediate action is taken.
At the same time, interest rates are unlikely to come down fast given worries over inflation after a decade in which house prices nearly trebled. As growth slows and inflation rises, the pound has suffered from expectations of economic misery ahead, falling to three-month lows versus the dollar last week and hovering near record troughs against the euro.
By 1357 GMT the pound was down 0.28 percent on the day at $1.9510, having hit its lowest since late February last week at $1.9363. The euro was up 0.1 percent at 79.74 pence - staying fairly close to last month's record high at 80.98.