The pound fell against the euro after growing UK economy at a slower rate

The pound fell against the euro after a report showed the UK economy grew at a slower rate than estimated in the third quarter.

The pound weakened against 11 of its 16 most actively traded counterparts as the data of National Statistical Office showed gross domestic product in the UK rose 0.7 percent in the three months to September. That compares with an initial estimate of 0.8 percent announced in October that was double the pace expected by economists. Second quarter growth was revised to 1.1 percent from 1.2 percent.

"The GDP data called the pound," said Jane Foley, currency strategist at Rabobank International in London. "The data fed worries that growth will slow in the fourth quarter, and only takes away some of the shine had been put to the pound for this stronger version in October."

The pound sterling depreciated by 0.3 percent to 85.21 pence per euro as of 10:50 am in London. The UK currency was little changed at $ 1.5475, $ 1.5470 yesterday.

The pound has lost 0.7 percent in the last week.

Since late 2009, the British currency has lost 6.1 percent, compared with a decline of 10.3 percent for the euro and a loss of 1.4 percent for the dollar.

Bank of England Minutes of December meeting showed policymakers remained divided in its decision to keep the benchmark interest rate at a record low of 0.5 percent and the asset purchase program unchanged at 200 million pounds .

Business Investment

ONS Separate reports today showed that business investment rose 3.1 percent in the third quarter of the last three months, while the current account deficit rose to 9.6 billion pounds from 5.2 million pounds. As a percentage of GDP, the deficit was 2.6 percent.

Government bonds were little changed, with the 10-year gilt yields dropping a basis point to 3.49 percent. The two-year yield was 1.20 percent.

Gilts returned 6.6 percent this year, according to indexes compiled by the European Federation of Financial Analysts Societies. Treasuries gained 5.8 percent and Germany's debt reference values of the euro zone, returned 5.9 percent, rates of EFFAS show.