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Sterling hits five-week high against dollar

Published:  22 July, 2011

Today's currency markets saw sterling hit a five-week high against the US dollar on yesterday as a draft conclusion was reached in Europe on the Greek debt crisis.

Today's currency markets saw sterling hit a five-week high against the US dollar on yesterday as a draft conclusion was reached in Europe on the Greek debt crisis.

Currency rates July 22, 2011

EURO/GBP 1.1306
US$/GBP
1.6296
CHF/GBP
1.3424
CAN$/GBP
1.5378
AUS$/GBP
1.5033
ZAR/GBP
11.021
JPY/GBP 128.19
HKD/GBP
12.698
NZD/GBP
1.8883
SEK/GBP 10.230
AED/GBP
5.981
US$/EURO 1.4410

 

This saw the euro rally against the US dollar and sterling followed the euro in gaining against the US currency. UK data yesterday was mixed, with figures showing an above forecast increase in retail sales figures for June. However, consumer confidence dropped in the same period and data showed that public sector net borrowing rose which left investors doubting the validity of the UK recovery.

In the euro zone, markets rallied after European leaders agreed a new rescue deal for Greece that will trim the country's debt by 12% of GDP and see the European bailout fund given new sweeping powers. Key points from the deal are that the European Financial Stability Facility rescue fund will help states sooner, recapitalise banks and intervene in the bond market in a drive to halt contagion. Despite waves of optimism, many do not expect this to last long as markets will inevitably question Greece's ability to deal with its debt mountain.

In the USA, the US dollar dropped across the board as investors reversed safe haven currency investments on the back of the new Greek bailout deal. In addition, markets were wary of the approaching August deadline for a potential US default. There were moves made this week on an agreement to raise the US Congressional debt ceiling and avoid defaulting on a payment on August 2. In addition, US unemployment claims gained by more than expected hitting 418,000 for the week.

Elsewhere, the Canadian dollar rose to a three-year high against the US dollar and the Norwegian krone advanced as crude oil prices rose. The Swiss franc fell against most of its major counterparts as investors pulled out of safe haven investments. 


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.

 

www.SmartWineSpirits.com


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