The currency markets

Over the past 24 months the fluctuations in the currency markets have been noticeable to say the least. The Pound has plummeted from its 27 year high of £1 = $2.070 Since then the pound has dropped to lows of around $1.4 earlier this year and recovered to a more respectable $1.65 at the moment. Below is a very brief recap of the Dollar over the recent weeks.

Dollar has slipped again this week, losing ground against the Euro. This has seen an increase in the risk associated with it and led to investors abandoning the currency to find returns elsewhere.

The dollar dropped 3.2% against the Yen and 0.6% against the Euro, whereas it stayed relatively strong against the Pound as it fell by 0.8% against the Dollar.

In other news, the Bank of England announced they would continue their policy of ‘quantitative easing’ whereby the government have injected £50 billion in to the economy through printing money could help to increase mortgage lending.

Currenct exchange rates:

USD EUR GBP JPY 1 USD = 1.00000 0.69959 0.60470 94.8900 Inverse: 1.00000 1.42940 1.65371 0.01054 1 EUR = 1.42940 1.00000 0.86436 135.636 Inverse: 0.69959 1.00000 1.15693 0.00737 1 GBP = 1.65371 1.15693 1.00000 156.921 Inverse: 0.60470 0.86436 1.00000 0.00637

Correct at time of printing (source)