Sterling weakens against euro and dollar

Published: 13 March, 2012

Sterling had a poor day yesterday weakening close to a day week low against the euro and a six week low against the US dollar.

Currency rates - March 13

EURO/GBP - 1.1878

US$/GBP - 1.5637

CHF/GBP - 1.4324

CAN$/GBP - 1.5491

AUS$/GBP - 1.4842

ZAR/GBP - 11.782

JPY/GBP - 128.78

HKD/GBP - 12.1350

NZD/GBP - 1.9034

SEK/GBP - 10.602

AED/GBP - 5.7484

US$/EURO - 1.3160

INR/GBP - 77.84

It also remained fairly flat against the commodity backed currencies.

The euro had a strong day yesterday strengthening against the majority of currencies as the People's Bank of China confirmed its intention to continue to invest in the Euro zone. The markets anticipate that the euro zone finance ministers will shortly agree that Greece is entitled to its second bailout after meeting the conditions it was set. The markets will then look towards developments in Spain as the country is due to miss its deficit target this year. Despite some expected clarity with regards to Greece, the deep-set problems for the Euro zone still persist.

The US dollar had a fairly strong day strengthening against the majority of currencies but weakened off against the euro as risk aversion was the main driver in the market. Retail sales data and the statement from the Federal Open Market Committee (FOMC) will be the main releases from the US today giving a clear indication of how the central bank sees the country's economic outlook thus leading to what monetary policies may be implemented going forwards.

Elsewhere, the commodity backed currencies had a poor day yesterday as risk aversion drove the market once more. The Official bank rate decision for Japan was released early this morning with the markets anticipating no change.

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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