The Great Britain pound dropped today as the report showed that the budget deficit climbed to the record, surpassing the analysts’ forecast and causing concerns about the future of the UK economy.

The net borrowing in November was £23.3 billion, compared with the borrowing of £17.4 billion a year ago. The forecast value was a deficit of £16.8 billion. The current budget showed the deficit of £19.9 billion in November 2010, while it was £14.0 billion in November 2009. The growing deficit signals about the problems of the UK economy, which the coalition government will probably encounter.

The struggling economy may cause the central bank to hold the interest rates unchanged, further decreasing the appeal of Britain’s currency. The sterling dropped 1.2 percent last week versus the basket of 10 currencies of the developed nations and declined 6 percent this year.

GBP/USD dropped from 1.5510 to 1.5465 as of 22:27 GMT today, while GBP/JPY fell from 129.92 to 129.45.

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