* Sterling drops after BoE inflation report
* Dollar little changed against most other leading
* Swiss franc at 26-month top against euro
(Adds New York early trading, quotes, latest prices and changes
dateline; previous LONDON)
By Michael Connor
NEW YORK, Nov 12 Britain's pound slouched
towards recent 14-month lows against the dollar as investors
pushed back rate-hike expectations to the fourth quarter of 2015
after the Bank of England's inflation report on Wednesday.
Sterling slipped further below $1.60 and was last at
$1.5816, off 0.6 percent, in early New York trading against the
dollar, which was little changed against most other major
currencies during a thin week of U.S. economic reports that
often drive the price of the greenback.
Britain's central bank said inflation was likely to fall
below 1 percent and monetary tightening would happen at a slower
pace. Governor Mark Carney said it was appropriate that markets
expected somewhat easier monetary conditions than they did three
months ago. He also highlighted economic risks from a struggling
"Dovish inflation data has effectively overshadowed a
generally positive UK jobs report and pushed back expectations
of a rate hike," said Omer Esiner, chief market analyst at
Commonwealth Foreign Exchange in Washington, D.C.
Sterling hit a low of $1.5812, not far from
Friday's 14-month low of $1.5791.
The yen pulled back from a seven-year low against the
dollar, after comments from a Japanese government official
cooled speculation that Prime Minister Shinzo Abe will call a
The dollar, which had popped above 116 yen earlier in Asia,
was down 0.6 percent in New York at 115.19. It had risen
to 116.11 yen on Tuesday, the highest since October 2007.
The yen has come under pressure on growing expectations Abe
will postpone a sales tax hike and call an election next month.
If he wins, a second round of reflationary policies may follow.
The Swiss franc edged up to another 26-month high, bringing
it closer to the Swiss National Bank's three-year-old cap of
1.20 francs per euro. The single currency fell 0.1 percent to
trade at 1.2017 francs, its weakest against its Swiss
counterpart since September 2012.
(Additional reporting by Anirban Nag and Jemima Kelly in
London; Editing by Meredith Mazzilli)