GBP/USD up as yen gains on Nikkei sell-off

Currencies Direct May 24th 2013 - < 1 minute read

The pound pared back its losses against the dollar this week as
sterling rose on comments from a US Federal Reserve official.

GBP/USD was up around 0.40 per cent at 1.5108 on Thursday (May
23rd) after touching on the key 1.500 barrier the previous day.

Sterling’s bounce came as St Louis Fed boss James Bullard
suggested the central bank was not “that close” to tapering its
bond-buying programme.

Earlier this week Federal Reserve chairman Ben Bernanke told
Congress the stimulus measures will stay in place for the time
being.

Meanwhile the dollar
exchange rate
also slid against the yen on Thursday following a
sharp decline in Japanese stocks and Chinese factory activity
prompted a rush for the safe-haven yen.

After a four-and-a-half-year high of 103.73 was hit earlier in
the week, USD/JPY tumbled to 101.79 as the Nikkei plunged 7.3 per
cent.

Overnight on Friday, however, the dollar had recovered from
two-week-lows against the Japanese currency as the Nikkei
rebounded.

Thursday’s stock-selling binge also saw investors flock to the
safe-haven Swiss franc. The dollar fell one per cent to 0.9682,
while EUR/CHF lost 0.4 per cent to 1.2528.

The pound lost more ground on the euro on Thursday, with EUR/GBP
up a quarter of a per cent at 0.8564.

Written by
Currencies Direct

Select a topic: