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Sterling falls to five month low against US dollar

Published:  28 June, 2011

Sterling fell to a five month low against the US dollar yesterday as concerns over the European debt crisis saw investors buy safe haven currencies.

Sterling fell to a five month low against the US dollar yesterday as concerns over the European debt crisis saw investors buy safe haven currencies.

Currency rates & Comments -  June 28

EURO/GBP - 1.1171
US$/GBP
- 1.5985
CHF/GBP
- 1.3344
CAN$/GBP
- 1.5754
AUS$/GBP
- 1.5265
ZAR/GBP
- 10.970
JPY/GBP
- 129.13
HKD/GBP
- 12.447
NZD/GBP
- 1.9822
SEK/GBP
- 10.324
US$/EURO
- 1.4314

It dropped as low as $1.5940/£1 as investors looked to park funds away from any perceived European exposure. Sterling also fell as a report showed that house prices fell for the second month in June, adding to concerns that the UK economic recovery stalled in the second quarter. 

In the euro zone, the euro strengthened yesterday after a very volatile day's trading. Swinging between gains and losses throughout the day, the single currency eventually strengthened on optimism that the Greek parliament will approve key austerity measures that are required to release funding from the ECB and IMF and avoid the euro zone's first sovereign default. The vote is due later today, so expect wild volatility as the markets respond to headlines and live coverage of the vote.

In the USA, stocks gained as regulators announced new rules to protect the global financial system. These included a requirement for banks deemed "too big to fail" to hold additional capital on reserve as part of efforts to avert another global financial crisis. Elsewhere, US consumer spending stalled last month posting the worst figure in a year. 

Elsewhere, the New Zealand dollar fell after a report showed the trade surplus narrowed in May by more than forecast. It dropped by 0.9% against the US dollar. New Zealand is a net exporter of goods and any drop in the level of goods/ services exported impacts on the country's economic growth.

Smart Currency Exchange is a currency partner to Harpers Wine and Spirit. Harpers Wine and Spirit has teamed up with Smart to provide readers with a free bespoke currency service.

www.SmartWineSpirits.com

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