By Tom Lydon:
With the British economy teetering on another recession, market observers are anticipating new stimulus measures from the Bank of England, driving the British pound currency, along with a related exchange traded fund, to a three-year low.The CurrencyShares British Pound Sterling Trust (FXB) dropped 4.4% over the past three months.
Tokyo (AFP) - The British pound surged to a more than two-year high against the euro Friday, while it also rallied against the dollar as early results suggested Scotland will vote against independence from the United Kingdom.
Hickey and Walters (Bespoke) submit:
The US Dollar Index has pulled back from 52-week highs in recent weeks, and it is now sitting just above its 50-day moving average. At the same time, the euro really hasn't bounced much, and it remains in a nasty downtrend. Two currencies that have gained ground in recent weeks are the British pound and the Swiss franc.
MUMBAI: The rupee rebounded from its 20-month low on Thursday with a 30-paise gain against the US dollar and closed at 63.94 in the interbank foreign exchange market here on Friday. The domestic currency gained on the back of a 506-point recovery in the BSE sensex and a 134-point jump in the NSE nifty to close at 27,105 and 8,192 respectively. Despite ending the week on a positive note, dealers and economists are forecasting that the rupee is in a depreciating mode and would continue to lose value in the first half of the year.
The pound dropped to a fresh five-month low against the euro and lost ground against the dollar on Friday as traders continued to punish sterling following comments from Mervyn King, governor of the Bank of England, earlier in the week.
The pound dropped to a five-month low against the euro after the market reacted to a Bank of England report warning that the financial crisis could have prompted a downward reassessment of sterling's long-term value
The pound sterling was worth just 1.1526 euros in London trade on Thursday, its lowest since the 1999 creation of the European single currency. The Bank of England is expected to lower its interest rate later in the day.