30 Nov

Pound down amid Dubai doubts

UK currency has struggled this morning after a slide in UK consumer confidence saw it drop towards a one month low against the euro. Concerns in the UAE also piled pressure on the pound despite the central bank saying that it “stands behind” the country’s local and foreign banks amid last week’s fears of a default in Dubai.

Pound Sterling – UK Markets

Sterling was stung by weak consumer confidence this morning, approaching a one-month low versus the euro following figures which underlined the UK’s ongoing economic frailties.

Dubai's recent despairs have contributed to the pound’s predicament, which traded feebly against the euro at 1.099 and 1.653 versus the US dollar.

US Dollar – US Markets

The dollar fell against other major currencies earlier this morning, retreating from sharp gains made last week, after banks in Dubai were offered emergency assistance from the UAE central bank in an attempt to soothe market fears about a looming debt default. The greenback currently trades at 0.604 against the pound and 0.664 versus the euro.

Euro – European Markets

The euro traded 0.4% higher at 91.10 pence today, having climbed as high as 91.30 pence in early London trade. The single currency hit a one-month high of 91.35 against the pound on Friday and remains strong due to month-end demand for euros from European central banks.

Other Currencies – Highlights

Australia’s dollar jumped to 91.91 against US currency and strengthened to 79.25 yen. New Zealand’s dollar also advanced to USD72.08 whilst the yen dropped to 129.87 per euro as a result of increased risk appetite.