Pound slips versus euro as govt borrowing rises

<p>The pound has fallen versus the euro as government borrowing rises more than expected.</p>

The pound has lost ground in forex trading with the euro this morning (January 22nd), as UK public sector borrowing rose in December.

According to official data from the Office for National Statistics, the government took out a higher-than-expected £15.4 billion last month excluding financial interventions.

This has added to fears the UK could lose its coveted AAA credit rating, after Fitch warned last week that the outlook of the country's top grade was negative.

The headline figure takes total borrowing so far this financial year to £106.5 billion – excluding a transfer of Royal Mail pensions assets – which is £7.2 billion more than the same period in 2011.

December's public sector borrowing marked a rise from the £14.8 billion acquired in November, while analysts had projected a figure of £15.2 billion for the 31-day month.

At 10:45 GMT, the pound fell by 0.1 per cent in trading with the euro to £1 buying €1.186.

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