British Pound Sterling | Currency News Views and Outlook
- Category: British Pound Sterling
- Published on Monday, 21 November 2011 14:04
- Written by Will Peters
The Pound slumped to the lowest level in a month against the U.S Dollar earlier today, while the UK currency also lost 0.7% versus the Euro.
The pound euro exchange rate is 0.391% higher on the day with 1 GBP = 1.5830 AUD at 1:15 PM in London.
The pound dollar exchange rate is 0.704% lower with 1 GBP = 1.5646 USD.
The pound Australian dollar exchange rate is 0.391% higher with 1 GBP = 1.5830 AUD.
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"The British Pound slumped to the lowest level in a month against the U.S Dollar earlier today, while the UK currency also lost 0.7% versus the Euro, after a report from Rightmove Plc showed that UK house prices declined by the most in a year," says an afternoon exchange rate note from analyst Adam Solomon at money transfer firm TorFx.
Home sellers slashed asking prices amid increasing concern that the UK economic outlook is deteriorating and will result in a contraction in growth during the fourth quarter.
The Prime Minister David Cameron conceded that Britain is “well behind” in terms growth and reiterated concerns over the UK’s exposure to the European sovereign debt crisis. The FTSE 100 Index dropped for a sixth consecutive day, which is feeding into risk aversion and boosting the appeal of the safest assets like the U.S Dollar and Yen.
The higher-risk currencies like the Australian Dollar and South African continued to weaken on risk sentiment, a theme that is likely to continue in the near-term until a level of stability and confidence returns to the market. The disappointing housing figures have brought the focus back on the weakness of the UK economy today and the Pound is losing value as a result.
The flight to safety that we are seeing was further emphasised by reports that a U.S congressional committee is likely to announce it failed to agree on a deficit reduction plan.