Home » Strong recovery of the pound sterling amid the decline of the dollar

Strong recovery of the pound sterling amid the decline of the dollar

by archyde

The British pound rose in volatile trading on Thursday, with the dollar falling against most currencies, with investors satisfied with the Bank of England buying long-term bonds to restore stability to the market.

The pound rose 1.4% to $1.1034, after having reached a 37-year low of $1.0327 three days ago, and the pound rose 6.4% against the dollar.

recovery returns British currency In part, the Bank of England moved to buy bonds. On Thursday, the central bank bought 1.415 billion pounds (1.55 billion dollars) of British government bonds with maturities of more than 20 years, in the second day of a multi-billion pound program aimed at stabilizing the market.

The British pound fell in early trading on Thursday, coinciding with Prime Minister Liz Terrace’s defense of the government’s tax cut budget.

On the other hand, the dollar fell against a basket of major currencies, as it was last down 0.1% at 112.454. The euro rose 0.4% against the dollar to $0.9767.

The data showed economic sentiment in the Eurozone fell more than expected in September, with confidence waning among businesses and consumers who are also pessimistic about price trends in the coming months.

Market focus was on German inflation, which jumped to 10.9% this month, exceeding expectations of 10%.

On the other hand, the dollar rose 0.3% to 144.525 Japanese yen. The Chinese yuan outside the mainland also rose by about 0.5% to 7.1280 per dollar, after Reuters reported that the authorities had told government banks to prepare to intervene in the yuan’s favour.

The risk-sensitive Australian dollar fell 0.6% to $0.6483.

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