Sterling bows to dollar strength after UK GDP data

The pound eased on Thursday after data confirmed the UK economy entered recession in the second half of last year and as the dollar put on a display of broad-based strength as the month and the quarter end. Action in the currency market has been dominated this week by the prospect of the Bank of Japan intervening to buy the yen, which has hit its weakest since 1990 against the dollar. On the corporate front, Thames Water, Britain's largest utility, faced a new crisis after shareholders said they would not offer further funding.