Sterling drops below $2 versus greenback
Story link: Sterling drops below $2 versus greenback
Sterling weakened on Tuesday, falling to below $2 versus the US dollar for the first time in over a month and a half as inflation data and house price expectations both declined.
Consumer price inflation dropped to 1.9 percent in July, well lower than the 2.3 percent CPI that was expected and below the Bank of England’s target for the first time in over a year, cutting the likelihood that the Bank will hike interest rates in September.
In addition, the pound was hurt by new data from the Royal Institution of Chartered Surveyors that shows a majority of surveyors and real estate agents expect that house prices will fall over the next three months.
The UK currency dropped 0.4 percent to €0.6790 versus the euro, while it fell 0.7 percent to $1.9990 against the US dollar and by 0.8 percent to ¥236 in relation to the yen.
The yen was also stronger versus the dollar and the euro, to ¥118.10 and ¥160.20 respectively.
The euro dropped 0.2 percent against the greenback, to $1.3575.
Related stories:
-
US dollar drops on session
Yen drops on equities gains
Yen drops as markets calm
New Zealand dollar drops after Reserve Bank intervention
Greenback drops on Bernanke comments
Yen drops on machinery orders
Latest News:
- Yen weakens on US data
- USD weakens, rebounds after scare
- Pound sees gains on factory data
- Yen weakens on data, risk chances
- USD weaker versus yen, euro
- USD weaker on gains in NY equities
- USD, yen stronger on risk aversion
- Euro weaker on lower consumer prices
- Dollar lower ahead of Fed decision
- Yen stronger on US, China data