Dollars to Pounds Exchange Rate ? GBP EUR Steady In Spite Of Spiralling Portuguese Debt Yields

Modified: Tuesday, 31 January 2012 09:07 BST - Written by Tim Boyer

STORY LINK Dollars to Pounds Exchange Rate ? GBP EUR Steady In Spite Of Spiralling Portuguese Debt Yields

The Pound Euro exchange rate (GBP EUR) is 1.1943. The Pound Dollar exchange rate (GBP USD) is 1.5744. The Pound Australian Dollar exchange rate (GBP AUD) is 1.4772.

Market focus turned from Greece’s ongoing debt negotiations with its creditors to Portugal’s ailing public finances during yesterday’s session.

Yields on the treasury bills of the troubled Iberian state soared to their highest level since the instigation of the euro in 1999, with the interest rate on the country’s benchmark 10-year bonds jumping to above 15%. Rates of above 7% are generally considered by analysts to be untenable in the medium-to-long term, so it may not be long until Portuguese policy-makers are forced to follow in the footsteps of their Greek counterparts in re-negotiating the terms of their debt arrangements with the country’s creditors. Investors have shunned Portuguese debt partly thanks to the action of the world’s three leading credit ratings agencies, each of which has acted to downgrade Portugal’s bonds to ‘junk’ in recent weeks.

The Euro has held steady in the past 24 hours in spite of the worrying news from European bond markets. This may not last if the poor news from the eurozone persists during today’s session.

Meanwhile, today’s session sees a packed day of data releases, with UK Mortgage Approval numbers for last month and Canadian GDP growth data for November providing the highlights. The Pound is on the back foot following last week’s poor growth data and dovish Bank of England minutes. A weak showing for this morning’s British mortgage data could see investors shift en masse out of Sterling-denominated assets.


For dollars to pounds exchange, 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 Daily Currency Updates Dollar Po Forecasts