Sterling is down this morning against a broadly stronger dollar. The euro has stumbled to its weakest against the greenback in three months after Greece’s downgrade reignited credit concerns.

Pound Sterling – UK Markets

The pound reversed Wednesday's gains against the dollar to trade at a low of 1.620 but hit a one-month high versus the euro at 1.123. Sterling had rallied to a one-week high against the dollar yesterday after a surprisingly upbeat employment data raised expectations that the UK economy was recovering.

US Dollar – US Markets

The dollar hit a three-month high against a currency basket after the Federal Reserve offered an optimistic view of the U.S. labour market following a policy meeting on Wednesday. The dollar rose to 1.440 per euro this morning, the highest since early September, and currently trades at 1.637 against UK currency.

Euro – European Markets

The euro slipped to lows of 88.52 pence this morning, its weakest since mid-November. The single currency fell for a third day against the dollar after S&P joined Fitch Ratings in downgrading Greece, which has the widest budget deficit in the European Union.

Other Currencies – Highlights

The Australian dollar weakened as a decline in Asian stocks pared demand for riskier assets. The currency slumped 1.2% to 89.00 US cents, after hitting 88.73 cents, the weakest since October 7th.