Sterling Goes Down with House Prices

The Great Britain pound fell today against the Japanese yen as the report showed that UK house prices declined this month, adding to signs that Britain’s economy is struggling. The problems of the United Kingdom reduced demand for the sterling as a haven from the European crisis. The currency still managed to advance versus the dollar.

The Rightmove House Price Index fell 2.4 percent in August from July, when the prices declined 1.7 percent. The index rose 2.0 percent this month, year-on-year, increasing with the slower rate than the July’s 2.3 percent. The report explained that the Olympic Games failed to detract seller, creating competitiveness on the housing market that has led to lower prices.

GBP/JPY was down from 124.87 to 124.63 as of 14:57 GMT today, while GBP/USD went up from 1.5695 to 1.5709, following the drop to 1.5676.

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