Sterling falls vs dlr; BoE comments still weigh

Thu Nov 12, 2009 4:38pm GMT
 
Email | Print | | Single Page
[-] Text [+]

* Sterling hits one-week low vs dollar of $1.6515

* Sentiment still negative after BoE chief's QE comment

* Stg turns higher vs euro after earlier hitting 2-wk low

By Jessica Mortimer

LONDON, Nov 12 (Reuters) - Sterling hit a one-week low against the dollar on Thursday, staying weak after comments from the Bank of England governor the previous session while disappointing U.S. data propped up the safe-haven U.S. currency.

Sterling rose against the euro, however, coming off an earlier two-week low, with traders citing selling of euros versus sterling by corporate accounts.

Analysts said sentiment towards the pound remained negative after comments on Wednesday by BoE chief Mervyn King suggested the central bank was leaving the door open to more asset purchases and he highlighted the benefits of a weak currency.

"The market's still reading Mervyn King's comments to be on the dovish side," said Paul Mackel, director of currency strategy at HSBC.  Continued...

 

Market Update

  • UKUK
  • USUS
  • Europe
  • Asia
  • UK Most Actives

Most Popular Business News on Reuters UK

  • Articles
  • Videos