The Pound Sterling lost ground today against the U.S. Dollar, as continued losses in the equity markets heightened risk aversion, and helped prop up the greenback. However, the Pound was able to gain an edge on the Euro, coming close to 90 Pence, which was the highest price in 11 days.
The Pound Sterling’s gains against the single currency Euro were propped up as a result of negative comments made by George Soros, the Hungarian born billionaire, and encouraging commentary about the future of the Pound made by Bank of England official, David Blanchflower. Blanchflower commented that he was “bullish” on the currency, and felt that the Pound was undervalued. He did warn, however, that the United Kingdom was nonetheless in a recession. Mr. Soros commented that it is his belief that the Euro will be unable to survive if there is not a concerted effort by the European Union for a consensus on toxic assets.
In early morning trading in the U.K., the Pound Sterling lost .5% versus the U.S. Dollar, trading at $1.4235. Meanwhile, the Euro fell .1% versus the Pound, trading at 90.46.