Sterling pares gains vs dollar, euro on King comments
LONDON, June 24 (Reuters) - Sterling pared some gains against the dollar and the euro on Wednesday after Bank of England Governor Mervyn King said he had genuine concerns about how quickly the UK economy may recover.
During testimony to the UK parliament, King also said that a withdrawal of economic stimulus too quickly may create the risk of a renewed downturn, while keeping stimulus for too long risked a triggering of inflation [ID:nKING].
Sterling GBP=D4 slipped to around $1.6485 as King spoke, compared with around $1.6560 before the testimony from central bank policymakers began.
The euro EURGBP=R rose to around 85.15 pence from around 84.85 pence.
One trader in London said that the "generally downbeat tone" of the testimony was putting sterling under selling pressure.
(Reporting by Naomi Tajitsu and Tamawa Desai)
© Thomson Reuters 2009 All rights reserved
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