GM inquiry sees dollar dip
The dollar fell against the pound in the last 24 hours, as news that General Motors is facing an investigation over its accounting procedures hit the US currency.
This morning the dollar stood at to the 1.7862 pound, while the euro was at 1.4732.
Automotive giant General Motors said yesterday that it was facing an investigation by the US Securities and Exchange Commission, with the news already impacting on the currency.
Speculation that the company might face Chapter 11 bankruptcy added to the difficulties dogging the dollar, with many analysts warning there could be ongoing problems.
Bear Stearns currency strategist Steve Barrow told MarketWatch: "Clearly the pension issue has dogged GM for some time, but the subpoenas are still a surprise, and if this issue continues to gather steam, with bankruptcy rumours continuing, it could continue to weigh on the dollar."
Elsewhere the pound showed some resilience, while new figures on the mortgage market emerged from the British Bankers' Association (BBA).
The BBA reported that home purchase loan approvals had risen by 17 per cent in the last year, with the data adding to signs of stability in the British property market.