News Column

Dollar Improves From 5-year Low Versus Sterling

June 24, 2014

WASHINGTON (Alliance News) - The dollar hardly budged versus other currencies on Tuesday, but posted modest gains against the sterling after dovish comments from Bank of England Governor Mark Carney.

Carney told British lawmakers that any increase in base interest rates will be "limited and gradual."

He told the MPs that he expects the base rate, in five years' time, to be "materially below" the historic average of 5%. It currently sits at a historic low of 0.5%.

The dollar improved to USD1.6950 versus the sterling, having slipped to a 5-year low of USD1.7050 last week.

The buck was little changed at USD1.3611 versus the euro.

An Ifo survey said business sentiment in Germany fell to 109.7 in June from 110.4 in May. Economists had forecast the reading to drop marginally to 110.3. Current conditions remained unchanged at 114.8 in June, while it was forecast to rise to 115.

There was almost no movement versus the yen, as the dollar remained locked in a tight range near 102.

In economic news from the US, new home sales surged up by much more than anticipated in the month of May, according to a report released by the Commerce Department on Tuesday, with sales jumping to their highest annual rate in six years. The report said new home sales soared 18.6% to a seasonally adjusted annual rate of 504,000 in May.

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Source: Alliance News

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