Pound remains stronger on data

Story link: Pound remains stronger on data

The pound was stronger in relation to the US dollar and the yen Wednesday as equities markets climbed and on a new report showing that factory production in the UK was up 0.2 percent in April over May’s numbers.

This positive new data comes after recent reports showing that the UK services sector is up, house prices have risen.

Additionally, Prime Minister Gordon Brown has apparently avoided resignation for the present, calming the political climate in the UK.

At shortly after 10:30 a.m. in New York, the pound traded at 85.6p to the euro while it took $1.6377 or ¥160.7108 to buy a pound.

The US dollar, on the other hand, was down against most major currencies as investors bet that the recession is getting better by looking for risky investments.

Meanwhile, the greenback was also hurt by news that the Russian central bank will likely replace some of the US Treasuries in its reserves by purchasing bonds issued by the International Monetary Fund.

This is the first time the IMF has issued bonds, doings so now to raise more cash to be able to make more loans to member nations during the current economic turndown.

At mid-morning in New York, the dollar traded at $1.4019 to the euro, at 63.01 cents US to the New Zealand dollar and at 80.55 cents US to the Australian dollar, but both the euro and the greenback were stronger in relation to the Japanese yen as that Asian currency traded at ¥137.5718 to the euro and at ¥98.13 to the US dollar.