Sterling hits seven month high against the US dollar
STERLING gained against a broadly falling US dollar yesterday, as share prices rose on expectations for the global economy to stabilise, prompting investors to cautiously shift towards riskier assets.
The pound rose to a seven-month high against the dollar, while it also gained against the euro and the yen.
The dollar fell broadly, hitting its lowest level since mid-December 2008 against a basket of currencies.
By mid-afternoon, the pound was up 1.4 per cent at $1.6413 after rising to $1.6432, its highest since late October last year.
“The pound’s strength has been concentrated largely against the weakening dollar,” said Daragh Maher, deputy head of foreign exchange strategy at Calyon.
The euro was down 0.9 per cent at 86.55p while the pound was up 1.7 per cent against the yen at 156.73 yen, highest since mid-November.
“We expect to see euro/sterling stabilise around these levels, although… sterling weakness could be seen on any further extensions to quantitative easing,” UBS analysts said in a note.