Currency Exchange UK

 

Weak Dollar Buoys the Pound

Weak Dollar Buoys the Pound

The pound rose to a one-month high against the US dollar this Friday, helped by a broadly weaker greenback and improved UK economic data.

Investors spent early trades heading for riskier assets as appetites were whetted for European stocks this week. 

However, many currency analysts put out a cautious tone that next week’s emergency Budget could put throw a spanner in the works.

Official figures released by the Office for National Statistics (ONS) showed that the deficit of GDP shrank by more than expected in May in the UK. 

This showed investors that the new government seems to be proving successful in its mission to cut public debts.

Next week, Chancellor George Osborne will announce his emergency Budget (on June 22), and it expected that there will be a round of tough measures to ensure that the deficit continues to be decreased.

Meanwhile the dollar is taking the rap from a round of weak US data; the .DXY currency basket for the dollar saw it slump to a one-month low.

By mid morning in London, the pound was trading 0.3 per cent higher on the day at $1.4872, having risen to $1.4887, its highest point since May 13.