Sterling and yen weaker; US dollar mixed

Story link: Sterling and yen weaker; US dollar mixed

Sterling was weaker on Wednesday as factory orders fell in August, down 9 points compared to July and 11 points worse than had been expected.

The UK currency lost 0.3 percent to £0.6813 in relation to the euro, fell 0.4 percent to SFr2.2783 against the Swiss franc, and was down fractionally to $1.7979 in relation to the US dollar.

The declines in orders led to more talk that the Bank of England might cut interest rates again this year. Such talk had quieted in recent days as more positive economic news began to be reported.

Meanwhile, the US dollar had an up and down day on a report of falling orders for durable goods, although some analysts called the decline a correction after several months of gains in the number of orders. Other, however, put the blame on rising crude oil prices and at least one economist suggested that the decline in orders was a sign that the Federal Reserve should break its string of interest rate hikes.

The greenback fell 0.2 percent in relation to the euro, to $1.2254, but it gained 0.2 percent against yen to ¥110.13.

The Japanese currency was also lower in relation to the euro, losing 0.4 percent to the shared currency to ¥134.9. This new weakness in the yen came despite a continuing rally in the Japanese equities markets. Some analysts blamed the decline on service price inflation that was weaker than expected.