Tentative recovery for battered pound, modest deterioration for dollar

Among the currencies hit by the after-shock of Britain’s vote to leave the EU, the dollar appears to be faring well, despite a small dip in Thursday’s Asian session, while the sterling received the biggest blow but is cautiously recovering.

The pound is projected to lose over 7% this month, despite a small increase to $1.3456, significantly up from Monday’s $1.3122, during which the pound touched a low point previously experienced 31 years ago.

British politics are still in turmoil and the precise terms of the Brexit process have yet to be announced, leaving investors with high hopes but low certainty.

Meanwhile, the dollar dropped by 0.1% in the dollar index, which indicates its value relative to a group of six trade partner currencies and it is predicted to face an overall 0.2% loss this month.

Against the Japanese yen, considered a safe-haven currency, the dollar was down 0.1%, remaining a safe distance above it’s Friday low of 99.00.

The appreciation of the yen, associated with times of global risk, is not welcomed by Japan, and adds on to fears of weakening industrial output and a reduction in exports.

The euro, which peaked on Monday at 83.80 pence, is also crawling down, now at a slightly lower 82.67 pence. This small dip is additionally apparent against the dollar, as the euro currently stands at $1.1116, after a 0.1% decrease, which is also the expected total monthly loss.

The post Tentative recovery for battered pound, modest deterioration for dollar appeared first on FXTM Blog.

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