Tuesday June 23, 2009
LONDON: Sterling rallied to its highest since early December against the euro on Monday as the single currency came under selling pressure ahead of the European Central Bank's first one-year refinancing operation. The UK currency later pared gains, however, turning lower on the day as UK equities extended losses to trade down 2 percent, while a survey cast doubt on any turnaround in the UK housing market.
The euro nevertheless remains on course for a quarterly fall of more than 8 percent against sterling which, if maintained, would be its biggest since the euro's inception. The earlier rise against the euro helped sterling to a seven-month high against a basket of currencies, but it fell against the dollar as global growth concerns and jitters before a US Federal Reserve meeting pushed the US currency higher.
The euro fell to a low of 84.01 pence, its weakest since December 1, before recouping the day's losses to trade up 0.3 percent at 84.64 pence at 1451 GMT. The gains against the euro helped propel sterling's trade-weighted index to 84.5, its highest since November.
(Reuters)
LONDON: Sterling rallied to its highest since early December against the euro on Monday as the single currency came under selling pressure ahead of the European Central Bank's first one-year refinancing operation. The UK currency later pared gains, however, turning lower on the day as UK equities extended losses to trade down 2 percent, while a survey cast doubt on any turnaround in the UK housing market.
The euro nevertheless remains on course for a quarterly fall of more than 8 percent against sterling which, if maintained, would be its biggest since the euro's inception. The earlier rise against the euro helped sterling to a seven-month high against a basket of currencies, but it fell against the dollar as global growth concerns and jitters before a US Federal Reserve meeting pushed the US currency higher.
The euro fell to a low of 84.01 pence, its weakest since December 1, before recouping the day's losses to trade up 0.3 percent at 84.64 pence at 1451 GMT. The gains against the euro helped propel sterling's trade-weighted index to 84.5, its highest since November.
(Reuters)
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