The British Pound dropped to its lowest level against the Euro in almost a year on expectations that the European Central Bank (ECB) will increase its interest rates above the Bank of England's current borrowing rate, effectively making the Pound less attractive.''We've seen an unwinding of some of the expectations for higher rates,'' said Ian Gunner, head of foreign exchange research at Mellon Financial Corp. in London. ''CPI softened off, wages haven't risen as fast as forecast and we expect euro- sterling to go higher further out as ECB rate increases will be more durable.''

In the foreign exchange against the Euro, the British pound was worth 67.45 pence in comparison to a previous trade of 67.49 pence. It also traded at 1.9614 U.S. Dollars in comparison to a February 27 trade of 1.9622 U.S. cents.