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.
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