On January 21, 2009 in early trading in Tokyo, the Pound Sterling and the Euro gained slightly, recuperating from earlier losses as investors soften somewhat on risk aversion. But market worries persisted over huge losses in the banking sector in the U.K. and the protracted Euro Zone recession, which limited the rebound of the Pound Sterling and the Euro.
The Euro and Pound Sterling were supported by short-covering as Asia stocks came off earlier lows, in addition to the rise in U.S. stock futures. According to some analysts, it is difficult to predict whether or not the worst was past for the Euro and the Pound. Earlier today, the Pound Sterling touched on its lowest price in 7 years against the U.S. Dollar and a record low against the Japanese Yen.
Pressure on the Pound Sterling increased after the RBS announced on Monday the biggest losses in corporate history in the United Kingdom. Sterling gained 0.2% from late trading in the U.S. and traded at $1.3875, after dropping to $1.3815, the lowest since June 2001. The British unit fell by 0.2% against the Japanese Yen and traded at 124.65 Yen, after falling to 123.95 Yen, a record low price.
The Euro jumped by 0.3% against the U. S. Dollar to $1.2945 and also rose against the Japanese Yen by 0.3% to 116.15 yen. The U.S. Dollar was up by 0.1% against the Japanese Yen and traded at 89.84 Yen.