Summary of Currency Markets for October 3rd – October 7th 2011
Posted by Allison on 10 October 2011, 13:48
Welcome to another report on the state of the currency markets at the moment. At a time when all eyes seem to be on the Euro, it can be easy to lose track of what else is going on with regard to currency converter amounts. So let’s see how the British pound is getting along.
An overview of the currency markets for October 3rd – October 7th 2011
The last time we caught up with the pound’s status against the US dollar, we had a figure of 1.5580 to close out the week with. The first week in October gave us some interesting facts to mull over, as the pound lost ground to end on 1.5308 by Thursday evening. But Friday saw us pull our socks up and end on 1.5534 for the week.
But where do we stand against the Euro? Last time we finished on a rate of 1.1538, and we had good news on day one of the new week as we improved to 1.1633. But it was to be an up and down week when the closing rate was only slightly better than we had started with – 1.1563 overall.
Let’s move on now to see whether the Hong Kong dollar had anything to show us. We were starting on 12.140 but this started to drop virtually straightaway. An up and down week saw us end with a rate of 12.092 on Friday evening, so we were slightly down on our starting position, although it could have been worse.
Moving onto the New Zealand dollar we saw last time that the pound had managed to break through the two dollar barrier once more. But could we stay there? The opening rate of 2.0377 was soon improved on to give us an impressive 2.0517 by Tuesday night. But just 48 hours later that figure had shrunk to 1.9973. We did however improve again to 2.0101 by the time the weekend was upon us.
So where would this leave us with the Australian dollar? Could we improve our position here and move up from the 1.6008 we were starting with? We did do exactly that in the early part of the week, reaching a rate of 1.6326 by Tuesday night. But this was to be the high point as we sank back to finish on a disappointing 1.5871 by Friday. So it was a mixed week of results all in all.
Notable events in the world of currency
A drop against the Canadian dollar
Here there was bad news as the British pound fell from 1.6275 to 1.6085.
A slight improvement for the pound against the Swiss franc
We did better here though, climbing marginally from 1.4042 to achieve a closing rate for the week of 1.4298 against the Swiss currency.
Good news against the Indian rupee
We achieved a slightly better rate here though, as the pound climbed from 76.292 to 76.366 over the week.
It is no big surprise to announce that the Euro is struggling to maintain a good exchange rate with any number of currencies at the moment. So this news story from Bloomberg probably does not come as a big shock. This was how the week ended and there is little sign that things will improve anytime soon. The main story is whether the Euro is on its last legs, as many suspect it is, with time running out to save it. Some would question whether it can or should be saved, with others supporting it to the end.
So we shall see whether we get any improvements on the state of play in the currency markets in the forthcoming days and weeks. The pound is not doing badly at the moment, and indeed it has had some reasonable results over the past week or two. The question is whether these will continue or not, and we shall be watching for the answer.