Pound to Dollar Exchange Rates – GBP AUD Plummets To Multi-Decade Low AS RBA Cuts Interest Rates, Sterling Euro Steady

7 Feb 2012 at 9 AM - Written by Tim Boyer

STORY LINK Pound to Dollar Exchange Rates – GBP AUD Plummets To Multi-Decade Low AS RBA Cuts Interest Rates, Sterling Euro Steady

The Pound Euro exchange rate (GBP EUR) is 1.2037. The Pound Dollar exchange rate (GBP USD) is 1.5801. The Pound Australian Dollar exchange rate (GBP AUD) is 1.4651.

The Australian Dollar has surged overnight after the Reserve Bank of Australia announced that it was keeping its key lending rate on hold at 4.25%. The majority of analysts had anticipated that the RBA would continue its rate cutting cycle and trim interest rates to 4.00%. The GBP AUD exchange rate has plunged on the news, breaking to a new multi-decade low of 1.4618. However, the move may be short-lived, as the RBA’s accompanying statement hinted that a more accommodative monetary policy might be on the cards later in the year in order to promote domestic growth.

Elsewhere, Greece’s debt situation shows little sign of improving. Comments from the country’s Finance Minister Evangelos Venizelos last night suggested that a resolution to the debt-addled state’s current woes remains a long way off. Venizelos described ongoing negotiations with representatives of the ‘Troika’, (the IMF, EU and ECB), as ‘tough’. He went on to suggest that events were overtaking his country’s administration, stating that, ‘as soon as one chapter closes another opens".

Up to this point, the euro has eased in the currency markets, but has avoided a sharp sell-off. However, the longer Greek debt discussions fail to bear fruit, the more pronounced the pressure will become on Europe’s single currency. Such a scenario could see the Pound Sterling to Euro (GBP EUR) exchange rate break above January’s 16-month high of 1.2163, which remains a key level of resistance for the pair.

For Pound to Euro currency exchange, other live foreign exchange rates and a money converter see the currency news website.

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