Currency Exchange UK

 

Sterling falls to 8 month low against USD

Sterling falls to 8 month low against USD

Against a basket of currencies, the US dollars extended gains on Friday as investors remained wary of the Eurozone.  Fiscal problems in the region left many heading back to the dollar – it reached a seven-month high.

On Thursday the pound steadied against the euro as the Bank of England announced that the current asset-buying scheme would be put on hold.  Investors had been expecting this and were not disappointed.

The Bank’s 200 billion pound ‘money printing’ programme is to receive no increase and will pause after having been in effect for nearly a year.

Meanwhile, the base interest rate was kept at 0.5 per cent – another decision which had been widely expected. 

The pound fell against the dollar again on Friday to $1.5664 – its lowest in over eight months.

The euro is experiencing continued pressure from nerves over the Eurozone. 

Greece is already weighing heavy on the region, with a massive deficit of 12.7 per cent, which it says it wants to reduce to less than 3 per cent by 2012. 

Meanwhile Portugal is causing more worry as many investors fear it will also put Eurozone stability in jeopardy.