Sterling bounces off Monday's record low
Nick Hasell
Sterling this morning bounced modestly off Monday’s record low of 97.99p against the euro to trade at 97.30 but fell to a six- year low against the dollar.
At €102.8, the pound has, however, failed to claw back much of the 2 cent loss of yesterday. Currency markets continue to assume that sterling will soon reach parity against the euro on the view that the bleak outlook for the British economy will mean more aggressive rate cuts than in the eurozone.
At one stage today, sterling also hit a low of $1.4385 against the US currency, its weakest level since April 2002, but rallied later to $1.4497. Trade-weighted sterling fell to 73.6, the lowest level on daily records held by the Bank of England, which go back to 1990.
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More: http://business.timesonline.co.uk/to...cle5417307.ece
Nick Hasell
Sterling this morning bounced modestly off Monday’s record low of 97.99p against the euro to trade at 97.30 but fell to a six- year low against the dollar.
At €102.8, the pound has, however, failed to claw back much of the 2 cent loss of yesterday. Currency markets continue to assume that sterling will soon reach parity against the euro on the view that the bleak outlook for the British economy will mean more aggressive rate cuts than in the eurozone.
At one stage today, sterling also hit a low of $1.4385 against the US currency, its weakest level since April 2002, but rallied later to $1.4497. Trade-weighted sterling fell to 73.6, the lowest level on daily records held by the Bank of England, which go back to 1990.
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More: http://business.timesonline.co.uk/to...cle5417307.ece
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