Pound Drops to Lowest in Four Months as European Crisis Spreads
The Great Britain pound fell to the four-month low against the US dollar and to the three-month low versus the Japanese yen on concerns that the spreading European crisis may negatively affect the UK economy.
No one is trying to anticipate a euro breakup, but you just can’t rule it out.
Yield on 10-year gilts declined 13 basis points to 1.65 percent, following earlier drop to a record low.
Previously, problems in the European Union had positive effect on the sterling. It looks like the trend has changed now. It is hard for Britain’s economy, which is fragile by itself to ignore the impact of the European crisis, so the nation’s currency is plummeting.
GBP/USD traded at about 1.5474 as of 5:24 GMT today after it touched 1.5461 — the lowest level since January 20. GBP/JPY dropped from 122.35 to 121.86 and the daily minimum was at 121.75 — the low last seen in February 14.
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Earlier News About the Great Britain Pound:
- Pound Drops After BoE Releases Minutes of Monetary Policy Meeting (2012-05-23)
- Pound Falls as CPI & HPI Drop (2012-05-22)
- Risk Appetite, Better Situation Help UK Pound (2012-05-18)
- Pound Falls as UK Economy Threatened by Europe's Crisis (2012-05-16)
- UK Pound Drops Against Stronger Euro (2012-05-15)