Selling pressure on the pound and demand for higher-risk currencies saw the aussie advance to a fresh twenty-year high of 1.8464 against the pound.
- Remarks by Bank of England Governor Mervyn King to a regional newspaper published yesterday underscored the central bank’s lack of concern about the weakness of the pound, which sent the currency spiraling.
- The aussie received further support as investors shifted funds into higher-risk currencies after the US Fed bolstered expectations that interest rates would remain low for some time.
- Risk appetite was also encouraged after the G20 meeting, where a statement showed signs that that global stimulus measures would remain in place, buoying demand for the Australian dollar.
- In trading this morning, the pound’s downward trend has continued as confidence in the currency remains weak, with the aussie pushing on another cent with trading currently around 1.8450.
Related posts:
- The pound has failed to sustain yesterday’s rally against the aussie, plummeting over 2 cents so far this morning
- Sterling weakness drags it down below 1.60 following King’s comments
- Australian, New Zealand Currencies Benefit from Risk Aversion
- Euro lost ground vs the dollar following an easing in risk appetite
- Pound Sterling Trends Downward as BOE Expands QE
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