Pound, dollar higher as Argentine peso slumps

Currencies Direct January 24th 2014 - < 1 minute read

Sterling was higher against the dollar on Friday (January 24th)
bucking other currencies as the greenback pushes broadly higher on
bets the Federal Reserve will further reduce stimulus at a meeting
next week.

rose to 1.6649, the strongest for the pair since April
2011, though the dollar was up against most of its major peers.

The greenback extended recent gains against the Canadian and
Australian dollars. AUD/USD was down another 0.75 per cent after
Friday’s Asian session at 0.8702, while USD/CAD was at a four-year
high of 1.1124.

EUR/USD slipped slightly, but remains close to a three-week

Investors believe the Fed will reduce the size of its monthly
bond buying programme next week, from $75 billion to $65 billion,
according to some estimates.

Meanwhile, Argentina’s peso slumped by its most in 12 year as
the country’s central
gave up trying to support the embattled currency.

The peso has fallen by over 12 per cent in the last two days,
its biggest decline since Argentina abandoned its one-to-one peg
with the US dollar in 2002.

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