Sterling hits 8-week low vs currency basket

LONDON, Sept 8 Thu Sep 8, 2011 3:08am EDT

LONDON, Sept 8 (Reuters) - Sterling hit an eight-week low against a currency basket on Thursday as the pound sold off slightly on speculation the Bank of England may announce more economic stimulus when it releases it monetary policy decision later in the day.

Trade-weighted sterling , which tracks the pound's move against the UK's main trading partners, slipped to 78.6, its lowest since July 13.

The move reflected a 0.2 percent rise on the day in the euro to 88.34 pence, while the pound traded 0.3 percent lower versus the dollar at $1.5939. (Reporting by London Markets Team)