News Column

Dollar Slumbers, Stays Near 5-year Low Against Sterling

June 20, 2014

WASHINGTON (Alliance News) - The dollar barely budged on Friday, staying near its lowest in more than five years versus the sterling.

Traders were keeping an eye on escalating violence in Iraq in the absence of first-tier economic data.

Some attention was paid to data showing that the UK budget deficit widened in May, but the sterling kept its strong weekly gains amid speculation the Bank of England will soon raise interest rates.

The buck was holding at USD1.70 versus the sterling after touching USD1.7064 in the previous session -- its lowest since 2009.

Dovish remarks from Federal Reserve Chairman Janet Yellen on Wednesday sparked bets that the Bank of England is the more likely to deliver on rate hikes.

Yellen said it will be a "considerable time" before the Fed raises its benchmark interest rate.

Although the Fed's bond-buying program remains on pace to end this autumn, policy makers are still concerned about the pace of the US recovery.

The dollar was steady at USD1.3560 versus the euro, having seen little movement since touching a 4-month peak on June 6, when the European Central Bank announced easing measures.

A stubborn trading range has also left the dollar near Y102 versus the yen, for a weekly gain of 0.1%.

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Source: Alliance News