PT Solid Gold Berjangka | Pound Trades at Five-Week Low on Dollar, Resumes Recent Slide
Currency Poundsterling GBP/USD GBP/EUR PT SGB Solid Group SG Berjangka Solid Gold Berjangka
Solid Gold Berjangka | The pound resumed its decline against the dollar on Tuesday, falling to a five-week low, and steadied on the euro as markets calmed down after the previous day’s sharp swings.
Sterling was last down 0.6% against the dollar at $1.2699, its lowest since July 3. It has fallen around 2.6% from its mid-July peak a fraction above $1.30, as traders trimmed their long positions into the Bank of England’s rate cut last week .
The sterling-dollar rate has been less affected than those for some other currency pairs by recent ructions across markets. Patrick Ernst, currency strategist at UBS Global Wealth Management said in a note this is because the pound’s sensitivity to swings in assets like equities compensated for changes in the relative rate outlook.
The pound was also a fraction weaker on the euro with one euro at 85.9 pence, though more stable than it was yesterday.
The euro jumped to as high as 86.19 pence on Monday, its highest since early May, a move Nick Rees, currency analyst at Monex Europe, attributed to some safe-haven flows shifting to the common currency from the dollar, given the ructions in the United States.
Source : Reuters