LONDON, March 28 Sterling fell to its lowest in
2011 against a basket of currencies on Monday as the pound came
under broad selling pressure, falling to a two-month low against
the dollar and a five month low versus the euro.
Sterling's trade-weighted index =GBP fell as low as 79.1,
its weakest since late December.
The UK currency fell as low as $1.5944 GBP=D4 against the
dollar, its weakest since late January, while the euro
EURGBP=D4 rose to 88.19 pence, its strongest since late
The pound has been under pressure as concerns about a
fragile UK economy have dented expectations for UK interest rate
hikes. Traders said its falls on Monday were exacerbated by
selling in the pound against the Australian dollar GBPAUD=R
related to insurance payments for Queensland flood damage.
(Reporting by London Forex team)