The Pound Sterling Exchange Rate was in the region of 1.1604 against the Euro as of 11:46 am
Earlier today we reported that in January UK inflation held at 2.7 per cent for the fourth month in a row. This figure is 0.7 above the Bank of England’s inflation target of 2 per cent and the highest recorded since May of 2012.
Concerns that this latest development will lead to the British central bank negatively revising its growth forecasts for the UK when it gives its inflation report tomorrow have led to the Pound posting significant declines against several of its most traded currency rivals.
Sterling added 0.7 per cent to yesterday’s declines of 1.3 per cent against the Euro and briefly slid to its lowest level against the US Dollar since early August last year.
Chief economist with London-based FXPro Group Ltd Simon Smith commented that ‘the inflation numbers we’ve seen today aren’t going to cause the BoE to start tightening.’
He continued: ‘The economy’s just too weak for that. The relationship between the data and the currencies has become more complex, we’re not seeing firmer data reducing stimulus expectations. The pound can weaken further.’
In other currency news, G-7 (a grouping of financial leaders from the world’s most prominent industrial nations) has attempted to calm fears regarding an impending currency war with a promise to support economic growth by avoiding attempts to devalue their currencies.
A statement released by the group of finance ministers/central bank governors went as follows: ‘We reaffirm that our fiscal and monetary policies have been and will remain oriented towards meeting our respective domestic objectives using domestic instruments, and that we will not target exchange rates.’
After the statement was publicised the Yen shed recent gains against the US Dollar.
Current GBP exchange rates
The Pound Sterling to Euro exchange rate is currently trading at 1.1604
The Pound Sterling to US Dollar exchange rate is currently trading at 1.5608
The Pound Sterling to Australian Dollar exchange rate is currently trading at 1.5230
The Pound Sterling to New Zealand Dollar exchange rate is currently trading at 1.8688
The Pound Sterling to Canadian Dollar exchange rate is currently trading at 1.5720
The Pound Sterling to Emirati Dirham exchange rate is currently trading at 5.7305
The Pound Sterling to Swiss Franc is currently trading at 1.4315
The Pound Sterling to Japanese Yen exchange rate is currently trading at 147.0300