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2015.01.0822:07:09UTC+00British pound dives to 18-month low on UK perils

The British pound plunged for fifth consecutive day Thursday, reaching its lowest in 1½ years, on a mix of broad dollar strength, weaker UK growth bets, and political uncertainty.

The Bank of England retained its benchmark interest rate at 0.5%, its rate since 2009. The currency has fallen more than 12% on push-back in rate hike expectations.

Sterling dropped to as low as $1.5034 Thursday, its weakest since July 2013, before a slight recuperation at $1.5092, down 0.1%.

Against the euro, which tumbled to a nine-year low versus the US dollar near its 1999 launch rate, the pound ascended 0.2% to 78.16 pence.

"Sterling has really been driven by the downside for the euro against the dollar," said Marvin Barth, European Head of FX Strategy at Barclays. 

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