Pound rallies as dollar weakens across the board

Currencies Direct May 21st 2013 - < 1 minute read

Sterling rose against the US dollar on Monday (May 20th) as
the greenback suffered losses against a basket of major
currencies.

GBP/USD hit 1.5278 as the pound gained around 0.65 per cent in
US afternoon trade, before consolidating around 1.5240.

Sterling wasn’t the only gainer on Monday, however, as investors
tempered speculation that the Fed will exit its bond-buying
programme this year.

The dollar index, which measures the
exchange rate
against a basket of currencies, fell by around
0.6 per cent to 83.764, retreating from a three-year peak set on
Friday.

EUR/USD also rose sharply with the single currency up nearly 0.5
per cent to break the 1.2900 barrier at one stage before
consolidating around 1.2885.

Against the pound the euro was also stronger, with EUR/GBP
striking upwards to 0.8468 on Monday morning before settling back
at 0.8454.

The US dollar also retreated from a four-and-a-half-year high
against the yen on Monday, after comments by Japan’s economy
minister, Akira Amari, who said the yen’s excessive strength had
largely corrected and further losses could damage the country’s
economy.

Written by
Currencies Direct

Select a topic: