Most Asian Currencies Weaken Amid Risk-Off Sentiment

1040 GMT – Sterling looks vulnerable to a potential repricing of excessive expectations of interest-rate rises by the Bank of England, Commerzbank says. The market expects the BOE to raise rates by 25 basis points at the next four meetings following last week’s higher-than-expected U.K. inflation data for April, Commerzbank currency analyst You-Na Park-Heger says in a note. Such expectations look “exaggerated” and data will sooner or later point to falling price pressures and a further weakening of the economy, she says. “We therefore see the risk of a correction of the rate expectations and thus downside risks for sterling.” GBP/USD falls 0.4% to 1.2358 but EUR/GBP drops 0.1% to 0.8637 after earlier hitting a five-and-a-half-month low of 0.8625, according to FactSet. (renae.dyer@wsj.com)