FX round-up: Sterling back above $2

British Gas – Price Control 2011

PreviousPrevious
NextNext

Fix your energy bills until 2011.

We guarantee you peace of mind for 3 years, with no price premium to pay.

Find out more today! Advertisement

Date: Friday 07 Mar 2008

LONDON (ShareCast) - Sterling made it back above $2 in London trading and recovered from record lows against the euro in the wake of the decision by the Bank of England to leave interest rates unchanged. Although the decision was widely expected, the removal of the element of doubt was enough to spur the British currency higher to $2.0083 from $1.9920 the day before.

The European Central Bank (ECB) also held its rates unchanged. The European currency rose to fresh highs in New York against the US dollar, as the ECB president, Jean-Claude Trichet, gave no hint of any softening in the central bank’s hardline stance against inflation. Trichet said that euro zone inflation was likely to remain above the bank’s medium term upper target of 2% in the next few months, with the ECB’s mid-point estimate for the range of inflation over 2008 ratcheted up to 2.9%, compared with December’s forecast of 2.5%.

The greenback encountered further selling as equity markets fell on more bad news from the financial sector, with two companies failing to meet margin calls. The euro improved against the greenback to $1.5391, up $1.21 on the day, while the amount of Japanese yen a single dollar could buy dipped to 102.63 from 104.03. Sterling improved to $2.0111 in New York trading, continuing the momentum from London trading.

Digital Look have been voted
"Best Research and Information Provider"

4th Floor, Bankside House, 107 Leadenhall Street, London EC3A 4AF.
Registered in England and Wales (registered no. 3678570).