FOREX-Yen holds near 13-yr peak vs dollar, sterling dips

Thu Jan 22, 2009 6:37am GMT
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* Yen firms broadly on banking woes

* Yen hovers near 13-½ yr peak vs dlr, 7-yr high vs euro

* Sterling dips again after rebounding on G7 comment

* BOJ leaves interest rates at 0.10 pct as expected

By Satomi Noguchi

TOKYO, Jan 22 (Reuters) - The yen held near a 13-1/2-year peak hit against the dollar and a seven-year high struck versus the euro the previous day, buoyed by growing investor anxiety about global banking woes.

Sterling hovered above a 23-year low hit against the dollar on Wednesday, erasing gains made after a source told Reuters the currency's slide would be discussed at the next meeting of the Group of Seven industrialised countries in February. [ID:nLL70613]

The pound has come under severe pressure this week as a government rescue package for struggling British banks failed to reassure investors or stem losses in banking stocks. At one point on Wednesday, sterling plunged to $1.3620, its lowest since 1985.

U.S. bank shares erased some of their losses made earlier in the week and fuelled a Wall Street rally on Wednesday, helping Asian stocks cling to small gains. [MKTS/GLOB]   Continued...

 

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