The Currency Converter

Exchange Rates: The Pound against the US Dollar

November 25th, 2010

GBPUSD traded at $1.5789 having earlier weakened 0.2 percent to $1.5742, its lowest level against the U.S. currency since Oct. 27, as problems in the euro zone prompted some flows into the safe-haven dollar. This combined with the continued geo-political threat in Korea enabled the greenback to continue to make marginal gains. U.S. jobless claims fell to the fewest since 2008. Elsewhere the USD has strengthened as Americans increase spending for the 5th month in a row. They have also filed fewer unemployment claims, both of which suggest that the US economic situation is improving. Stocks have rallied and Treasuries declined as the economic releases yesterday along with the increase in consumer confidence have helped to improve the outlook for the forthcoming holiday season. A North Korean statement after Tuesday’s artillery clash that the South’s action was driving the peninsula to the brink of war earlier prompted investors to seek relatively safer-haven currencies. The dollar also fell 1.2 percent against the South Korean won, erasing some of the 3.2 percent gains made on a volatile Tuesday.

Written by James Rowe

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