Pound marks its best month in 10 years against the dollar

Pound marks its best month in 10 years against the dollar


The dollar rose slightly against the euro at the end of trading on Thursday as the market pondered the upcoming decisions that the US Central Bank (Fed) could take after it decided to lower its rates for the third time this year. At last check, the euro added 0.04% against the greenback, to 1.1146 dollar.

The Japanese currency in this context took advantage of its safe haven status, boosted by a surge of uncertainty on the trade front and the fact that the Fed has not closed the door to further rate cuts, according to Joe Manimbo from Western Union.

The yen rose around 0.80% against the dollar, 107.99 yen to the dollar, and 0.83% against the euro, to 120.37 yen for one euro.

The yen also rose in the wake of a meeting of the Bank of Japan (BoJ), which maintained its monetary policy unchanged on Thursday while lowering its inflation and growth forecasts for the country for the accounting year 2019/2020 and for the two following years.

The pound recorded Thursday its largest monthly rise against the dollar since May 2009, while the currency has benefited in recent weeks from the hope that the country will not leave the European Union without agreement after further negotiations with Brussels and the Brythonic Parliament. It also benefited on the downside of the greenback on Thursday, gaining 0.28% to 1.2939 dollar.

The British currency has benefited in recent weeks from a renewed appetite of investors while negotiations between the United Kingdom and the European Union have suddenly progressed, finally reaching an agreement on Thursday, October 17. On the 21st, it even surpassed the symbolic bar of $1.30 for a pound, for the first time since May, before slightly falling back.

The impossibility of having this agreement approved by the British Parliament and the holding of early elections on December 12 have not scared off investors who have for the moment ruled out the risk of a Brexit without agreement.

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She is the Managing Editor for in-depth discussions and analysis as well as breaking news at Markets Morning. She works closely with Editor-in-Chief Zac Berry on content and publishing initiatives for the site. Brianna Clemons has worked as a financial journalist and editor since 1997. She lives in Bucks County, PA, with her husband, four young children and one dog.