The British pound rose in volatile trading on Thursday, with the dollar falling once morest most currencies as investors took comfort from the Bank of England’s purchase of long-term bonds to restore stability to the market.
The pound rose 1.4 percent to $1.1034. After hitting a 37-year low of $1.0327 three days ago, the pound rose 6.4 percent once morest the dollar.
The British currency’s recovery is partly due to the Bank of England’s move to buy bonds. On Thursday, the central bank bought 1.415 billion pounds ($1.55 billion) of British government bonds with maturities of more than 20 years, the second day of a multi-billion pound program aimed at stabilizing the market.
The pound fell in early trading, Thursday, in conjunction with Prime Minister Liz Terrace’s defense of the government’s tax cut budget.
On the other hand, the dollar fell once morest a basket of major currencies, as it was last down 0.1 percent at 112.454.
The euro rose 0.4 percent once morest the dollar to $0.9767.
The data showed economic sentiment in the euro zone fell more than expected in September, with confidence waning among businesses and consumers, who are also pessimistic regarding price trends in the coming months.
The focus of the markets was on inflation in Germany, which jumped to 10.9 percent this month, exceeding expectations that it would reach 10 percent.
On the other hand, the dollar rose 0.3 percent to 144.525 Japanese yen.
The Chinese yuan outside the mainland also rose by regarding 0.5 percent to 7.1280 per dollar following Archyde.com reported that the authorities had told state banks to prepare to intervene in the yuan’s favor.
The risk-sensitive Australian dollar fell 0.6 percent to $0.6483. (Archyde.com)