Aug 2 Reuters The pound steadied on Friday after suffering sharp losses a day earlier when the Bank of England BoE cut interest rates for the first time in more than four years.

Sterling was nearly flat at 1.2739, after having hit a fresh onemonth low at 1.2708 earlier in the session, and was on track to post its biggest weekly decline in nearly four months, down 1.

The BoE cut rates on Thursday by a quarterpoint to 5 in a tight vote by its policymakers, underscoring the extent to which inflation risks are still hanging over the economy.

Governor Andrew Bailey stressed the central bank was not committing to a series of quick rate cuts, saying the stronger performance of the economy in recent months could keep inflation risks on the radar.

However, the pound continued to weaken against the euro , touching an eightweek low of 84.995 pence at one point on Friday. Eurosterling was last up 0.27 at 84.915 pence.

Looking ahead, we see scope for the UK policy rate to be cut more than that in the euro zone and look for eurosterling to turn slowly higher, ING analysts said. We have been too bullish on eurosterling this year, but still favour levels above 85 later this year.

Investors are fully pricing one further cut to interest rates by the BoE later this year.

Meanwhile, the dollar eased against other major currencies ahead of U.S. payrolls data that is expected to show U.S. employment increased at a slower, but still healthy, pace in July.

A wave of selling hit stock…