Pound lowest in more than 2 years
The pound fell to its lowest in more than two years against a broadly strong US dollar on Monday, pressured by data showing factory inflation may have peaked and a US decision to take control of mortgage agencies Fannie Mae and Freddie Mac.
Analysts said the data gave the Bank of England room to cut rates as it needs to see a marked cooling in inflation before it can start easing monetary policy. The US Treasury’s decision, meanwhile, is expected to boost investor confidence in the US financial sector and broader economy, thereby supporting the dollar.
In early afternoon trading, sterling fell to $1.7472, the lowest since April 2006, according to Reuters data, and down more than 1.0% on the day. (Reuters)
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.