UK pound hits 10-month low against Singdollar

SINGAPORE — The British pound fell to a 10-month low against the Singapore dollar on Thursday (Feb 18), with £1 trading at S$2.0041 at 4.05pm (Singapore time), according to Bloomberg data.

The last time the British pound fell below S$2.0041 was on April 10 last year, according to Bloomberg. On that day, £1 traded at S$2.0019.

Since then, the highest the Sterling has closed against the Singdollar was on Aug 24 last year when £1 was worth S$2.2253. The pound has not gone below the S$2 mark since November 2013.

On Wednesday, the Sterling slid against 12 of its 16 major peers, as fears rose over a wage growth report.

However, on Thursday, the report showed that UK wage growth had unexpectedly accelerated in the three months through December, allowing the pound to strengthen against the euro and the US dollar.

Data showed that salaries in the UK, excluding bonuses, rose 2 per cent from a year earlier compared with 1.9 per cent in the quarter through November. The median forecast in a Bloomberg survey of economists was for an increase of 1.8 per cent. Bank of England officials have highlighted that wage growth is key to reaching their inflation target of 2 per cent.

Even so, gains in the UK currency were subdued as British Prime Minister David Cameron prepares for negotiations on the terms of Britain’s membership of the European Union. The outcome of the talks in Brussels this week is set to determine the timing of the government’s referendum on whether to remain in the trading bloc. WITH AGENCIES