British pound slides in long run down

London -- The British pound has weakened for 11 straight days against the dollar and may continue to drop further, analysts said.

The current 11-day slide is the longest consecutive drop since 1971 -- a drop that includes a 6.5 percent fall against the dollar since Aug. 1, The Times of London reported Friday.

"Already this summer we are seeing the start of what we believe is going to be an aggressive move lower in yields and also the pound," an investor report at Citigroup Global Markets said Thursday.

Combined with inflation at 4.4 percent, analyst speculate the Bank of England may need to cut interest rates by year's end.

Economic growth was at a "virtual standstill" in July, the Royal Institution of Chartered Surveyors said.

As the dollar has strengthened, commodity markets have seen prices fall. Oil is at a three month low. Gold is off 23 percent from its record set in March. And corn and copper hit six-month lows this week, the Times reported.

Copyright 2008 by United Press International.