The Pound Sterling Exchange Rate was in the region of 1.1582 against the Euro as of 12:25 pm
The Pound has been stuck in a decidedly bearish relationship with the majority of its peers ever since the Bank of England delivered its largely pessimistic inflation report last week, and today its declines continued.
Although the latest housing report compiled by Rightmove revealed an increase in UK home prices in February, comments regarding the relationship between the British currency’s strength and exports saw the Pound tumble to an over seven-month low against its American counterpart.
So far this year Sterling has shed 4.6 per cent, making it one of the worst performing developed-market currencies. However, whilst these losses in the Pound are holding inflation above the target 2 per cent they could make external difficulties easier to overcome.
For example, Martin Weale (policy maker with the Bank of England) asserted that UK exports could benefit from a weaker Pound.
Weale stated: ‘It may be that high levels of uncertainty and a reluctance to take on new risks have stood in the way of exporters seeking new markets and domestic producers doing what is needed to displace imports. Provided the calmer atmosphere we have seen since the summer is sustained, we may see further benefits of the depreciation.’
In response to Weale’s statement one industry expert asserted: ‘Weale’s speech is in line with our bearish view on Sterling. This is a clear message from Weale that further currency weakness is both likely and desirable.’
Meanwhile, FXPro chief economist Simon Smith was quoted as saying: ‘Investors are struggling to have faith in Sterling. Investors are seeing an economy which is possibly entering another recession and is likely to see inflation holding above target. The central bank is also wanting to see the currency lower. Weale’s comments were a fresh piece of evidence.’
And these comments contributed to the Pound’s additional 0.3 per cent drop against the US Dollar and 0.3 per cent decline against the Euro.
In two day’s time the Bank of England will release the minutes of its latest policy meeting. If the tone of this volatile publication is gloomy the Pound is likely to post loses against the majority of its most traded rivals.
Current GBP Exchange Rates
The Pound Sterling to Euro exchange rate is currently trading at 1.1582
The Pound Sterling to US Dollar exchange rate is currently trading at 1.5468
The Pound Sterling to Australian Dollar exchange rate is currently trading at 1.5007
The Pound Sterling to New Zealand Dollar exchange rate is currently trading at 1.8302
The Pound Sterling to Canadian Dollar exchange rate is currently trading at 1.5565
The Pound Sterling to Emirati Dirham exchange rate is currently trading at 5.6811
The Pound Sterling to Swiss Franc is currently trading at 1.4292
The Pound Sterling to Japanese Yen exchange rate is currently trading at 145.2700
These exchange rates were correct as of 12:25 pm
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