Sterling hits week high against Euro

Published: 14 June, 2011

Sterling hit its strongest level in more than a week against the euro on Monday.

Currency rates

EURO/GBP - 1.1360
US$/GBP - 1.6431
CHF/GBP - 1.3737
CAN$/GBP - 1.6000
AUS$/GBP - 1.5450
ZAR/GBP - 11.086
JPY/GBP - 132.001
HKD/GBP - 12.788
NZD/GBP - 2.0078
SEK/GBP - 10.34
US$/EURO - 1.4457

It was helped by concerns over euro zone debt and investors speculating over data released today that is expected to show higher than anticipated UK inflation. Against the US dollar, sterling also gained hitting a high of $1.6340/£1 - shaking off poor figures on Friday that showed a sharp drop in industrial output and the pound hit a two week low against the US currency.

In the euro zone, the euro fell to a record low against the safe haven Swiss franc as investor worries over the handling of the Greek debt crisis saw a flight to the safety of the Swiss currency. European policymakers are deadlocked on how to involve private investors in some form of debt restructuring. The ECB is at loggerheads with German proposals for a bond swap that it argues could cause market turmoil. It is a quiet day for data, but the turmoil over Greece is more than likely to cause significant volatility.

In the USA, uncertainty over future US monetary policy added to yesterday's sentiment of risk aversion as Fed Chairman Ben Bernanke has remained tight lipped over the next step for the economy after the Fed's $600-billion bond buying programme ends this month. The US dollar fell against most of its major counterparts yesterday ahead of data today that is expected to show that retail sales fell in May. Call in now for a live exchange rate.

Elsewhere, the New Zealand dollar fell after Christchurch was struck by aftershocks of the February earthquake. The kiwi slumped 1.1% against the US dollar and declined against sterling. In addition, the South African rand strengthened for the first time in four days against the dollar as exporters repatriated foreign earnings on expectations price swings in the South African currency will lessen in coming weeks.

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.

If you are making or receiving international payments and are interested in talking to Smart please go to: www.SmartWineSpirits.com to get a FREE no obligation quote or to download the Smart Wine and Spirit report. Alternatively call Smart on 0207 898 0500.

Printer friendly version