International

Sterling set for second week of decline against dollar

FILE PHOTO: British Pound Sterling and U.S. Dollar notes are seen in this June 22, 2017 illustration photo. ( REUTERS/Thomas White/Illustration/File Photo)

LONDON: Sterling dipped to two-week lows against the dollar on Friday, putting it on track for a second week of decline as investors looked for fresh catalysts after Britain's growth figures for the second quarter came in as expected.

As of Aug 12, the pound is the third best-performing G10 currency, trailing the Canadian dollar and the U.S. dollar.

Recent moves have been attributed largely to shifts in risk sentiment and moves in the dollar, although sterling has outperformed as COVID-19 cases have fallen and high vaccination rates allowed the British government to lift most restrictions.

Thursday's GDP figures, which came in line with expectations added to signs Britain's economy is on a path to recovery. But with the data not materially disappointing to the downside or surprising to the upside, investors sold the news.

On Friday, sterling dipped to its lowest levels since July 27, down 0.15% against the dollar at 0838 GMT to $1.3790. That put it on track for a 0.5% decline on the week.

Against the euro, it traded 0.2% lower at a week's low of 85.12 pence.

"This morning's decline ... appears to be a continuation of the modest dollar bull trend that appears to have embedded itself as a result of the market pricing a sooner than expected taper from the Fed," Michael Brown, senior market analyst at Caxton FX, said.

 

Recommended





Advertisement

Comments

Your feedback is important to us!

We invite all our readers to share with us their views and comments about this article.

Disclaimer: Comments submitted by third parties on this site are the sole responsibility of the individual(s) whose content is submitted. The Daily Star accepts no responsibility for the content of comment(s), including, without limitation, any error, omission or inaccuracy therein. Please note that your email address will NOT appear on the site.

Alert: If you are facing problems with posting comments, please note that you must verify your email with Disqus prior to posting a comment. follow this link to make sure your account meets the requirements. (http://bit.ly/vDisqus)

comments powered by Disqus

Advertisement

FOLLOW THIS ARTICLE

Interested in knowing more about this story?

Click here