The US Dollar remains higher against the Pound after the UK currency managed to recoup some of its losses following a speech by Bank of England governor Mark Carney. Concerns over military action in Syria have bolstered the US currency as investors seek a safe haven.
In a speech to business leaders in Nottingham Carney reaffirmed his commitment to providing further stimulus to the UK economy if investor expectations for interest rate hikes begin to undermine the nation’s recovery.
Despite Carney’s speech the markets remained spooked by the escalating situation in Syria; there are growing indications that the US and its allies could launch military strikes by as soon as the end of the week.
The Syria situation is dominating the markets so much that the latest US pending home sales data was largely ignored. Sales in the country fell by 1.3% in July, worse than economists had forecasted and te 0.4% loss recorded in the previous month.
“This is an environment where people are really focussed on one variable, which is going to dominate all others, and that today is Syria. The reflex is to sell during times of sudden unexpected conflict and there’s n reason to believe that this time would be any different. Weakness derived from temporary events can often at times be a great buying opportunity,” said Lawrence Creatura, fund manager at Federated Investors Inc.
Against riskier higher yielding assets such as the ‘Aussie’ and ‘Kiwi’ Dollars the ‘Greenback’ hit weekly highs as risk appetite fell. The Turkish Lira meanwhile dropped to a new record low as the prospect of military action against its neighbour generated concerns.
Current US Dollar (USD) Exchange Rates
The US Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6454
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7478
The US Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.1213
The US Dollar/Japanese Yen Exchange Rate is currently in the region of: 97.4951
The US Dollar/Canadian Dollar Exchange Rate is currently in the region of: 1.0501
(Correct as of 15:50 pm GMT)
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