Pound hits fortnightly low as investors keep an eye on fiscal cliff

Currencies Direct December 28th 2012 - < 1 minute read

It has been one of the most talked
about issues in the last few weeks since the election that saw
Barack Obama voted in for a second term as US president, and now
the impending fiscal cliff has seen investors become more uncertain
over the future of
currency exchange rates

The pound has fallen to a two-week
low against the dollar ahead of trading on Friday, thanks to the
fact that news from the US senate surrounding the financial issue
does not look good.

It was reported that the country’s
economy will go over the cliff in the first weeks after the new
year, according to US Senate majority leader Harry Reid, and this
saw the pound slip to 1.6077 against the greenback, dropping below
1.6100 for the first time in a fortnight.

Elsewhere, the euro showed
continued uncertainty, after recovering from 1.3200 lows against
the dollar to jump back to 1.3240 late on Thursday.

Written by
Currencies Direct

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