Pound declines versus dollar

Story link: Pound declines versus dollar

The pound touched a five-month low in relation to the US dollar on Monday but made gains against the euro after comments from Prime Minster Gordon Brown made it seem more likely that the Bank of England will cut interest rates again soon.

After the pound traded as low as $1.9653 to the dollar, it made some progress back and traded at $1.9714 to the greenback at nearly 1 p.m. in New York, while it sat at 74.51p to the euro at the same time after falling to a record low of 74.92p to the euro on Friday.

The gains against the euro came as confidence in the Eurozone fell to its lowest point in nearly two years on reports of growing inflation in the region.

Meanwhile, the US dollar made gains in relation to the yen after notching losses against the Japanese currency for seven straight sessions.

The greenback was also higher versus the euro and the Swiss franc.

In early afternoon trade in New York, the yen traded at ¥109.1300 to the dollar, while it took $1.4688 to buy a euro and the Swiss franc traded at SFr1.1179 to the dollar.