FX round-up: Dollar recovers from 15 month low
The dollar dusted off 15-month lows on Tuesday after Monday’s sharp falls as risk appetite faded and focus turned to Fitch’s comments on the UK.In an interview with Reuters Fitch said the UK, out of all the major economies, was most at risk of losing its AAA rating.
Sterling remained volatile throughout the day, falling sharply after the ratings agency said the UK was at risk of a ratings downgrade if action wasn’t taken to address the massive fiscal deficit. The comments were a stark reminder of the long term issues facing the UK economy and was enough to spark a round of profit taking.
The pound fell to $1.673, but off lows of close to $1.6600. The euro gained against sterling, adding 0.5% in early trading before easing back to trade up 0.1% at 89.5p.
The dollar fell to 89.81 yen from 90.06 yen on Monday while the euro rose above the $1.50 level but retreated after a German ZEW investor sentiment index showed a bigger than expected monthly decline.
| GBP | AUD | CAD | JPY | EUR | CHF | USD | |
|---|---|---|---|---|---|---|---|
| GBP | 1.0000 | 1.8022 | 1.7558 | 150.3306 | 1.1178 | 1.6883 | 1.6738 |
| AUD | 0.5549 | 1.0000 | 0.9742 | 83.4131 | 0.6202 | 0.9368 | 0.9287 |
| CAD | 0.5695 | 1.0265 | 1.0000 | 85.6196 | 0.6367 | 0.9616 | 0.9533 |
| JPY | 0.0067 | 0.0120 | 0.0117 | 1.0000 | 0.0074 | 0.0112 | 0.0111 |
| EUR | 0.8946 | 1.6123 | 1.5707 | 134.4838 | 1.0000 | 1.5104 | 1.4973 |
| CHF | 0.5923 | 1.0675 | 1.0400 | 89.0404 | 0.6621 | 1.0000 | 0.9914 |
| USD | 0.5975 | 1.0768 | 1.0490 | 89.8150 | 0.6679 | 1.0087 | 1.0000 |
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