THE British pound, which fell to a four-year low against the euro, may extend declines after the Bank of England said it discussed cutting interest rates this month and said a weaker pound helps the economy.

The dollar was off lows in midday trade, particularly against the yen, on Japanese intervention fears, dealers said.

UNCERTAINTIES over eurozone growth, budget requirements of monetary union and upcoming photo-finish German elections are holding back the euro, confounding predictions earlier this year that it would soar.

THE European Central Bank (ECB) is likely to leave interest rates on hold this year as it awaits clear signs of economic recovery.