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According to Reuters, the currency was down by roughly 0.3 per cent against the dollar at 11:05 GMT following the governor's comments, taking it to $1.5425.
This reversed earlier gains that had been made against its US counterpart and Jeremy Stretch of Rabobank explained that Mr King's testimony "has shown the decision not to expand quantitative easing was very finely balanced".
"It does look as though low rates are here to stay for the foreseeable future," he was quoted by the news source as saying.
Traders are now set to switch their attentions to the release of second gross domestic product estimates, which are expected to show a small upward revision quarterly growth of 0.2 per cent.
Yesterday, Reuters reported that sterling had come close to a nine-month low against the greenback as it continued to feel the affects of the release of worse-than-expected retail sales data late last week.
Posted by Greg Secker
