MUMBAI: The rupee today slumped by 38 paise to close at more than 3-week low of 65.31 against the American currency on month-end dollar demand from importers and some banks in view of firm greenback overseas. The rupee resumed lower at 65.15 per dollar as against the last closing level of 64.93 at the Interbank Foreign Exchange Market and dropped further to 65.31 before finishing at more than 3-week low of 65.31, showing a loss of 38 paise of 0.59 per cent. The rupee had last ended at 65.41 per dollar on October 6, 2015. It hovered in a range of 65.12 and 65.31 per dollar during the day.
Bookmakers altered the odds of a Brexit from 29 per cent to 33 per cent and the price of insurance against devaluation soared to a four-year high in the options markets yesterday, as banks repeated their warnings that sterling could slump as low as $1.20 if Britain quits the single market — a level not seen since 1985.
LONDON: Sterling powered to its strongest in 7-1/2 years against a trade-weighted basket of currencies on Tuesday, as better-than expected UK inflation data bolstered bets that the Bank of England will raise interest rates in the coming months. The numbers from the Office for National Statistics showed consumer prices rose 0.1 per cent in July, beating expectations that inflation would remain stuck at zero. Core inflation, which strips out food, energy, alcohol and tobacco prices, hit a five-month peak of 1.2 per cent, up from 0.8 per cent in June.
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.
LONDON: Sterling rose against the euro on Monday, buoyed by comments from Bank of England policymaker Kristin Forbes that reinforced expectations British interest rates will rise in coming months. Forbes, a US academic on the BoE's nine-member monetary policy committee, wrote in the Daily Telegraph: "Interest rates will need to be increased well before inflation hits our 2 per cent target.
LONDON: Sterling fell to a one-month trough against a broadly stronger euro on Wednesday after data showed British wage growth slowed more than expected in June, taking some pressure off the Bank of England to raise interest rates. The BoE is closely watching the labour market as it judges when to raise rates for the first time since the start of the financial crisis in 2008.
LONDON: Sterling fell to a three-week low Friday, on track for its biggest weekly loss against the dollar since late May, as expectations of an interest rate hike by the Bank of England were pushed back to the first quarter of 2016. The dollar was also buoyed by US jobs data, which more or less came in line with expectations, and kept alive the chances of an interest rate rise by the Federal Reserve in September. The dollar index hit its highest in nearly four months at 98.334 after the data.
With the euro already weakened by the Greek debt crisis, comments on Thursday by the Bank’s governor, Mark Carney, pointing to dearer borrowing around the New Year pushed sterling to levels last seen in the month following the collapse of Northern Rock in the autumn of 2007.