ANL 22.60 Increased By ▲ 0.27 (1.21%)
ASC 14.60 No Change ▼ 0.00 (0%)
ASL 23.27 Decreased By ▼ -0.38 (-1.61%)
BOP 8.35 Increased By ▲ 0.07 (0.85%)
BYCO 8.07 Decreased By ▼ -0.08 (-0.98%)
FCCL 17.98 Increased By ▲ 0.01 (0.06%)
FFBL 23.61 Increased By ▲ 0.13 (0.55%)
FFL 16.30 Increased By ▲ 0.20 (1.24%)
FNEL 7.70 Decreased By ▼ -0.27 (-3.39%)
GGGL 18.85 Decreased By ▼ -0.55 (-2.84%)
GGL 40.93 Decreased By ▼ -0.81 (-1.94%)
HUMNL 6.47 Increased By ▲ 0.13 (2.05%)
JSCL 19.25 Decreased By ▼ -0.12 (-0.62%)
KAPCO 37.00 Decreased By ▼ -0.18 (-0.48%)
KEL 3.49 Increased By ▲ 0.01 (0.29%)
MDTL 2.72 Increased By ▲ 0.02 (0.74%)
MLCF 35.19 Increased By ▲ 0.20 (0.57%)
NETSOL 134.03 Decreased By ▼ -5.27 (-3.78%)
PACE 4.86 Decreased By ▼ -0.26 (-5.08%)
PAEL 28.71 Increased By ▲ 0.36 (1.27%)
PIBTL 8.96 Increased By ▲ 0.06 (0.67%)
POWER 7.55 Increased By ▲ 0.25 (3.42%)
PRL 18.26 Decreased By ▼ -0.04 (-0.22%)
PTC 10.10 Increased By ▲ 0.10 (1%)
SILK 1.51 No Change ▼ 0.00 (0%)
SNGP 45.30 No Change ▼ 0.00 (0%)
TELE 18.92 Decreased By ▼ -1.49 (-7.3%)
TRG 168.50 Decreased By ▼ -1.00 (-0.59%)
UNITY 33.53 Increased By ▲ 0.48 (1.45%)
WTL 3.07 Increased By ▲ 0.11 (3.72%)
BR100 4,809 Decreased By ▼ -12.19 (-0.25%)
BR30 23,452 Decreased By ▼ -24.63 (-0.1%)
KSE100 45,754 Increased By ▲ 156.97 (0.34%)
KSE30 18,019 Decreased By ▼ -9.54 (-0.05%)

Coronavirus
VERY HIGH Source: covid.gov.pk
Pakistan Deaths
27,432
5824hr
Pakistan Cases
1,232,595
2,35724hr
4.9% positivity
Sindh
453,051
Punjab
425,703
Balochistan
32,812
Islamabad
104,619
KPK
172,210
Markets

Pound extends fall after US inflation data lifts dollar

  • The currency flatlined against the euro at 85.46 pence .
  • Jeremy Stretch, head of G10 FX strategy at CIBC Capital Markets, said sterling had reacted to "the negative references in the BoE FSR press conference".
13 Jul 2021

LONDON: Sterling fell against the dollar on Tuesday after data showing the highest US inflation in 13 years sent the greenback surging to a six-day high.

The US Labor Department said the consumer price index increased 0.9% last month, the largest gain since June 2008, while so-called core CPI surged 4.5% on a year-on-year basis, the largest increase since November 1991.

The data which prompted markets to bring forward their US rate hike expectations weighed on other currencies including the pound which extended earlier losses to touch a session-low of $1.37995 - down 0.6% on the day.

By 1330 GMT it had stabilised at $1.38350.

The currency flatlined against the euro at 85.46 pence .

The pound eased earlier in the day from the two-week highs hit on Monday when the Bank of England scrapped pandemic-era curbs on British banks' dividend payments but warned in its Financial Stability Report (FSR) that some asset prices looked stretched.

The BOE added it was keeping an eye on the housing market and how fast price rises translated into household indebtedness.

Jeremy Stretch, head of G10 FX strategy at CIBC Capital Markets, said sterling had reacted to "the negative references in the BoE FSR press conference".

"Bailey has underlined heightened sensitivity to higher borrowing in weaker parts of the economy in addition to warning regarding potential threats to asset price valuations," he added.

Sterling has been among the top performing G10 currencies this year following Britain's quick vaccination rollout, which encouraged hopes for a quick economic recovery.

But while the government plans to ease COVID-10 restrictions next week, investor confidence has been hit by a surge in COVID-19 Delta variant cases.

"Investors seems to be torn between optimism fuelled by the imminent lifting of all remaining corona restrictions in England and concerns about the spread of the Delta variant," Commerzbank wrote in a note to clients.

Comments

Comments are closed.