8 August 2003, 12:10  Sterling tracks euro lower against dollar

LONDON, Aug 8 - Sterling was flat against the euro but slipped versus the dollar on Friday, broadly tracking movements in other major currencies amid a light economic data calendar in Britain. Sterling has shown little independent movement since Thursday's well-anticipated decision by the Bank of England to keep interest rates steady at a 48-year low of 3.5 percent in the face of record consumer debt and signs the economy is picking up steam. "It's a very neutral outlook for sterling at the moment. Euro/dollar will dictate it," said Ian Gunner, head of foreign exchange research at Mellon Financial Corporation. By 0800 GMT, sterling was a third of a percent lower compared to late New York levels at $1.6125 , mirroring euro/dollar moves, but little changed at 70.30 pence per euro . The euro was broadly weaker, with the main pressure coming against the yen , which spilled over into trade versus the dollar.

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