Sterling fell almost one percent from late New York levels against the dollar and the euro on Thursday after Bank of England governor Mervyn King pointed to the risk of sterling's appreciation on UK growth. King, testifying before the Treasury Select Committee, said the prospect of more balanced growth was not helped by sterling's rise and that the strengthening currency was making life difficult for UK exporters. BoE's deputy governor Andrew Large also said sterling has been a factor in the bank's thinking. Analysts say the comments prompted investors to scale back expectations UK rates are going to rise aggressively. "People have to accept that a stronger sterling is the less likely it is they will raise rates. The question is how sensitive that relationship is," said Adrian Schmidt, currency strategist at Royal Bank of Scotland. "But the market was long of sterling."|||wwww.reutres.com