Dollars to Pounds Exchange Rate ? GBP EUR Rate Lower Following Rumours IMF Will Increase Eurozone Bail-Out Funding

Modified: Thursday, 19 January 2012 09:16 BST - Written by Frank Davies

STORY LINK Dollars to Pounds Exchange Rate ? GBP EUR Rate Lower Following Rumours IMF Will Increase Eurozone Bail-Out Funding

The Pound Euro exchange rate (GBP EUR) is 1.1943. The Pound Dollar exchange rate (GBP USD) is 1.5352. The Pound Australian Dollar exchange rate (GBP AUD) is 1.4825. The Dollars to Pounds exchange rate (USD GBP) is 0.64778.

They say that rumours drive the currency markets and yesterday’s session provided further evidence that this remains the case, as the Euro came in for support during early trading in the Europe, following market whispers that the International Monetary Fund was seeking to raise an additional $600bn in order to expand the bail-out funds available to debt-troubled Eurozone states.

Improved sentiment towards Europe’s single currency saw the Pounds to Euros GBP EUR exchange rate trade to as low as 1.1967 by the middle of Europe’s morning session. However, support for the Euro waned as the day progressed, following comments from American political analysts, which suggested that the IMF was highly unlikely to be able to increase the size of its battle chest, as any such fund-raising would need to be rubber-stamped by the US Congress. Given the ongoing funding tussle in the States, this is a situation which is highly unlikely to arise.

Elsewhere, there was more bad news for the Euro during yesterday’s session, with the release of Germany’s latest official GDP forecast, which saw German administrators downgrade their growth forecast for this year to 0.7%, down from October’s previous estimate of a 1% expansion in the region’s leading economic power.

Meanwhile, there was poor news for investors holding Sterling-denominated assets, with the release of the latest official UK unemployment figures, which showed that British unemployment continues to edge towards 3m, as the coalition government’s austerity measures begin to bite.

The Dollars to Pounds (Dollar Sterling) rate is trading down 0.05% on the day at 0.64778.

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