The pound fell for a fifth day versus the euro, reaching the weakest in almost 11 months, as a report showed Britain’s budget deficit widened in December, adding to concern that the economy will struggle to grow.

Sterling has depreciated the most this year of the 10 major currencies tracked by Bloomberg Correlation-Weighted Indexes as improving sentiment in the euro area damped demand for safer assets. The pound snapped a seven-day decline versus the dollar. U.K. government bonds were little changed as the Debt Management Office sold 10-year gilts.