23/03/2020

Sterling ends week stronger


GBP

Sterling rebounded against both the US dollar and euro on Friday, moving away from 3 decade lows against the dollar due to the measures taken by the Bank of England.The Bank of England decided to cut interest rates to a record low of 0.1% and ramped up its bond buying program to limit the damage caused by the coronavirus on the British economy. In recent weeks, the pound has fallen massively as investors have rushed to put their money into dollars, the world’s most liquid currency and is seen as a safe haven in times of crisis.

The stimulus package delivered by the Bank of England has boosted the pound, by cutting interest rates and boosting its quantitative easing program by £200BN to £645BN, which is seen as a positive for sterling.

USD

The US dollar eased on Friday as six major central banks announced action to enhance liquidity in the currency, but bounced of its lows in the afternoon as stocks weakened. The greenback has had some joy of late rallying as investors scramble to obtain the currency, gaining over 4% in its biggest weekly rise since the 2008 financial crisis.

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