Sterling falls further against US dollar

Published: 24 November, 2011

Sterling fell to a further six week low against the US dollar yesterday, falling below $1.55/ £1 following steep drops in the prices of riskier currencies and commodities.

Currency rates - November 24

EURO/GBP - 1.1602

US$/GBP - 1.5556

CHF/GBP - 1.4254

CAN$/GBP - 1.6251

AUS$/GBP - 1.5940

ZAR/GBP - 13.1824

JPY/GBP - 119.92

HKD/GBP - 12.1131

NZD/GBP - 2.0870

SEK/GBP - 10.7151

AED/GBP - 5.708

US$/EURO - 1.3388

A raft of poor data from the euro zone saw investors pull back from positions in riskier positions. With sterling seen as a relatively riskier option to the US dollar, the pound has come under pressure as the European crisis intensifies. The pound wasn't helped either by the Bank of England's minutes that showed policymakers unanimously voting for no change to monetary policy. One positive was that sterling strengthened against the euro.

The euro tumbled yesterday following poor demand for German bonds. Germany is seen by many as the 'safe haven' of the euro zone and the lacklustre bond auction yesterday may be the first signs of the markets beginning to question Germany's ability to handle the European crisis. In addition, data showed that industrial orders and purchasing figures fell in the region, signalling an impending recession.

In the USA, the US dollar strengthened to the highest level against the euro since early October as investors became more and more concerned over the impact that the European debt crisis was having on France and Germany - the region's largest economies. Markets are becoming more and more concerned globally and as such are seeking the safe haven of US dollars. Ensure you protect yourself by speaking to one of the team today.

Elsewhere, Chinese data released yesterday showed a sharp contraction in manufacturing activity. The figures shocked many who had been relying on China to drive the global recovery forward.

Supplied by Nick Ryder of Smart Currency Exchange, the currency partner to Harpers Wine and Spirit who have teamed up with Smart to provide readers with a free bespoke currency service. Go to www.smartcurrencybusiness.com/winespirit for more information or call on 0207 898 0500.

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