Monday, 16 February 2009

Dollar remains strong over sterling

The dollar weakened against the pound on Friday following an announcement by the House of Representatives to pass the £548 billion stimulus plan. The pound was supported by expectations that the G7 statement may outline plans to bolster the UK currency following its recent weakness. However the Group of Seven finance chiefs did not refer to the weakening pound, as investors speculate that this omission may ultimately weaken sterling further.

There are no significant announcements taking place in the US or UK today but with continued poor sentiment, the pound has weakend further.

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