Sterling falls to three month low against dollar

Published: 12 January, 2012

Sterling dropped by 1% against the dollar, hitting a three month low of $1.5308/£1 - the lowest since early October.

Currency Rates - January 12

EURO/GBP - 1.2031

US$/GBP - 1.5306

CHF/GBP - 1.4588

CAN$/GBP - 1.5584
AUS$/GBP - 1.4859
ZAR/GBP - 12.3846
JPY/GBP - 117.64
HKD/GBP - 11.8809

NZD/GBP - 1.9249

SEK/GBP - 10.6192

AED/GBP - 5.617

US$/EURO - 1.2701

INR/GBP - 79.12

The pound followed the euro downwards as concerns grew over the euro zone crisis, and risk appetite suffered off the back of comments by credit rating agency Fitch. The agency spooked markets with comments suggesting that the European Central Bank should do more to tackle the euro zone debt crisis. Despite falls against the US dollar, sterling held on to a 16 month high against the euro.

In the euro zone, the euro dropped to a 16 month low against the US dollar on the comments by an official from rating agency Fitch. Investors are feeling very wary ahead of today's ECB meeting and Spanish and Italian bond auctions later in the week. Comments from Fitch made clear that the ECB should be buying Italian bonds to avoid a "cataclysmic" collapse of the euro.

In the USA, the US currency strengthened against most of its counterparts as investors looked to the safety of US government bonds in the face of a worsening situation in the euro zone. The US dollar is set for further strength.

Elsewhere, the Canadian dollar fell for the first time in three days as safe haven demand for the US currency drove demand for the US dollar and pushed riskier investments lower. Speculation over the euro zone crisis and a potential French rating cut saw demand for riskier investments. Get in touch for a live exchange rate.

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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