Foreign Currency Insight : GBP USD Rate Dips as Reserve Bank of Australia Releases Dovish Minutes and Global Risk Appetite Ebbs Away

Modified: Tuesday, 19 July 2011 11:41 BST - Written by John Cameron

STORY LINK Foreign Currency Insight : GBP USD Rate Dips as Reserve Bank of Australia Releases Dovish Minutes and Global Risk Appetite Ebbs Away

The Pound Euro exchange rate (GBP EUR) is 1.1389. The Pound Dollar exchange rate (GBP USD) is 1.6116. The Pound Australian Dollar exchange rate (GBP AUD) is 1.5124.

Uncertainty continued to grip the markets during yesterday’s European and North American sessions as market participants fretted about the outcome of the ongoing Eurozone and US sovereign debt crises.

Ebbing global appetite for risk pushed the price of gold to above $1,600 per troy ounce for the first time in history as investors sought out safe haven assets. It was the precious metal’s eleventh straight day of gains. The US Dollar also saw sustained support, which taking the GBP USD rate as low as 1.6005.

The upward move in risk aversion also saw global equities markets trade lower, with the benchmark S&P 500 index closing down by 0.81% on the session and London’s FTSE 100 also up by 0.50%.

Elsewhere, last night saw the release of the Reserve Bank of Australia’s minutes of its July meeting; once again Australia’s central bank painted a bleak picture of the prospects for the global economy for the remainder of 2011, stating that China’s recent tightening of monetary policy was likely to have a negative effect on Australian growth and observing that the Eurozone’s debt woes pose a ‘more significant’ risk than had been the case last month.

The RBA described Australia’s current monetary policy as ‘appropriate’ and stated that it would take more time to assess the effects of inflation on the domestic economy before considering a further rise in interest rates. In spite of these dovish comments, the GBP AUD rate edged down from yesterday’s high of 1.5209 to trade as low as 1.5096 during last night’s Asian session.

For other live currency exchange rates and a currency converter see the currency news website.

International Money Transfer? Ask our resident FX expert a money transfer question or try John's new, free, no-obligation personal service! ,where he helps every step of the way, ensuring you get the best exchange rates on your currency requirements.

TAGS: American Dollar Forecasts Australian Dollar Forecasts Daily Currency Forecasts