Sterling loses steam
The pound reached high trading levels early in the week against its major currency partners but has come to a halt for a number of reasons. The currency edged lower against the dollar and lost heavily against the euro yesterday, as risk aversion crept back into the currency market. Investors have been feeling the poor run on the equity markets and as a result, are starting to shy away from risk.
Again, sterling was put under pressure with comments from The Bank of England's Chief Economist, Spencer Dale. Dale is in favor of the relative weakness of the pound, as it is making UK assets more attractive to foreign investors. The low sterling exchange rate is the key to helping the UK's economic growth.
At this point the best currency exchange rate for the sterling is EUR0.8491 and USD0.6032.
The rates quoted above are interbank rates. Client rates may vary according to the volume and timing of the trade.