Sterling soars as dollar hits 14 month low
Pound Sterling - UK markets
The sterling is soaring across the board in today's session and has rallied above 1.61 resistance, taking full advantage of the dollar's weakness. The pound has rebound from a previous low of 1.58 to reach a fresh three-week high. In case of consolidating above 1.612, next resistance levels for the UK currency could be located at 1.62, and above here, 1.63.
US Dollar - US Markets
The dollar hit 14-month lows against the euro and also touched a three-week low against sterling after policymaker comments reinforced the outlook that US interest rates would stay lower for longer than those of other major countries.
The US currency also fell against the higher-yielding Australian dollar and took a 15-month plunge versus the New Zealand and Canadian dollars but held steady against Japanese currency above 89 yen. The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.2 percent at 75.3 after falling to a 14-month low of 75.2.
Euro - European Markets
The euro has reached a fresh high since August 2008. Its advance against the dollar reached a new 14-month high in today's session, rising around 45 pips during the Asian time from 1.492 to reach 1.497. The EUR/USD has now fallen to trade close to 1.4930/40. Yesterday's close above 1.490 increases the possibility of a long-term rally for the currency.
Other Currencies - Highlights
The Aussie rose as high as USD 0.922, its highest since August 2008, before trading at USD 0.920, up 6% from late New York trade.
The New Zealand dollar touched a 15-month high of 0.748 against US currency, after stronger-than-expected inflation numbers raised expectations of a near-term interest rate climb.
Meanwhile another currency linked to commodities, the Canadian dollar, hit a 15-month high against the US dollar at 1.020. The dollar's broad fall also benefited the Swiss franc, which hit a 15-month peak of 1.01.