Exchange Rates Today: Pound Sterling Gains vs US/ New Zealand/ Australia Dollar

Modified: Monday, 7 October 2013 14:52 BST - Written by Frank Davies

STORY LINK Exchange Rates Today: Pound Sterling Gains vs US/ New Zealand/ Australia Dollar

The GBP USD, GBP AUD and GBP NZD exchange rates have all traded higher on the day. The Greenback remains under pressure due to the absence of a debt deal in the States, while the Commodity Dollars have suffered on the session due to a worrying report from the IMF.

The Pound US Dollar exchange rate (GBP/USD) is currently trading up by 0.37% at 1.6072 GBP/USD. The US Dollar Pound exchange rate is currently trading at 0.6222 USD/GBP.

Global stocks are trading down on the day and the Australian and New Zealand Dollars have lost ground as a consequence during today’s session. London’s benchmark FTSE 100 share index is down by almost 1.0% on the day, while Frankfurt’s Dax is down by an even greater amount since the market reopened this morning.

The shift out of risk looks to be partly attributable to a report from the World Bank, published this morning, which re-visited a theme which has worried institutional investors for the majority of 2013. The report downgraded the 2013 growth outlook for East Asia’s developing economies from previous estimates of 7.8% to a slightly less imposing 7.1%. Perhaps more worryingly for economic participants with interests in Australia and New Zealand, the World Bank also announced that it is downgrading its annualised growth forecast for China from 8.3% to 7.5%. The prediction comes as particularly unwelcome news for the New Zealand Dollar due to the Kiwi economy’s continuing reliance on China as the number one market for its plentiful exports. The Pound New Zealand Dollar exchange rate has climbed from an opening level in the 1.9200s to briefly change hands in the 1.9400s earlier on.

Meanwhile, another long-standing story sapping risk appetite from the markets is the US debt standoff between Democrat and Republican politicians. As another week begins without an accord between the warring factions, investors are beginning to fret about the negative multiplier effect which the continuing impasse may have on global economic activity. The Pound US Dollar exchange rate (GBP/USD) has registered decent gains on the day as a result. The next risk event of note comes tomorrow when last Friday’s postponed US jobs data is set for release.

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