Japanese nuclear crisis continues to dent sterling

Published: 17 March, 2011

Sterling slipped against the US dollar yesterday as concerns over the UK economy and worries over the Japanese nuclear crisis dented the pound.

Currency rates

EURO/GBP - 1.1503

US$/GBP - 1.6061
CHF/GBP - 1.4519
CAN$/GBP - 1.5892
AUS$/GBP - 1.6337
ZAR/GBP - 11.3727
JPY/GBP - 127.12
HKD/GBP - 12.5274
NZD/GBP - 2.2197

SEK/GBP - 10.3488
US$/EURO - 1.3955

The OECD also cut its expectations for UK growth citing falling house prices, weak domestic consumption and uncertain global demand. There was some positive data in the form of the unemployment claimant figures that unexpectedly showed that 10,000 fewer people claimed unemployment benefits in the last month which was nearly 12,000 better than was expected. Out later today, we have consumer inflation expectations which could see some volatility.

In the euro zone, the euro fell against sterling and the US dollar as Portugal's credit rating was downgraded late on Tuesday night by rating agency Moody's. In addition, a cooling of rate expectations nudged the euro downwards as ECB policymaker Christian Noyer cast doubts on expectations by stating that the bank would take stock of events in Japan before making a decision. It is a quiet day for data tomorrow, but the volatility in the market means that anything could happen.

In the USA, the US dollar sank to a 16 year low against the Japanese yen driven by ongoing concerns over the damaged nuclear reactor in the earthquake and tsunami stricken country. However, markets expect that the Japanese central bank will intervene to prevent any further appreciation in order to keep Japanese exports at competitive prices. There is a wide array of data released today in the USA.

Elsewhere, the Swiss franc moved towards record levels against the US dollar as investors scrambled for refuge amid turmoil in the Middle East and Japan. Concern over violence spreading to Saudi Arabia sparked fresh concern yesterday.

Smart Currency Exchange is a currency partner to Harpers Wine and Spirit. Harpers Wine and Spirit has teamed up with Smart to provide readers with a free bespoke currency service.

If you are making or receiving international payments and are interested in talking to Smart please go to: www.SmartWineSpirits.com to get a FREE no obligation quote or to download the Smart Wine and Spirit report. Alternatively call Smart on 0207 898 0500.

Printer friendly version