Market News
Sterling falls to nine-month low as dollar carries on climbing - REUTERS
By Alun John
LONDON, Jan 2 (Reuters) - Sterling dropped to a near-nine month low against the dollar on Thursday, hurt by the U.S. currency's relentless rise on expectations of dollar-supportive policies from incoming President Donald Trump.
The pound was last down 0.82% on the day at $1.2422, its lowest since April 2024, a decline which accelerated after it broke through resistance around $1.2475.
The euro also fell, hitting a more than two-year low, and the Japanese yen, and most other currencies were weaker on the dollar, albeit by less than sterling.
Trump's policies are widely expected to not only boost growth but also add to upward price pressure. That will lead to a Fed cautious about cutting rates too much further, in turn underpinning U.S. Treasury yields and boost dollar demand.
