The Great Britain pound rose erased its losses against the dollar after reaching the lowest level since July 2010 yesterday and maintained the gains today. The currency was also strong versus the euro, but stayed weak against the Japanese yen.
The United Kingdom’s public sector net borrowing recorded -£11.4 billion in January, the largest surplus in five years. Part of the surplus consisted of the transfers from Bank of England’s asset purchase program. Still, the UK economy remains in a dire state and economists are worried that the country may lose its top AAA credit rating.
The risk aversion sentiment weakened the pound against the yen and caused the earlier drop of the currency against the dollar. By the same token, the sterling managed to rise versus the euro as Britain’s currency is sometimes considered to be a safe haven from Europe’s woes.
GBP/USD rose traded at 1.5246 as of 1:39 GMT today after touching the low of 1.5128 yesterday. EUR/GBP declined from 0.8716 to 0.8644 yesterday and remained near that level today. GBP/JPY fell from 142.50 to 141.99 on the previous session and was near yesterday’s close on the current session.
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