Posted by Allison on 30 March 2010, 04:11
Welcome back to another fact packed report on the state of the currency markets at the moment. This time we will be looking to see how the remaining three days of last week panned out. The last time we saw the pound it was down against four out of the five currencies we look at on the currency converter each time.
There was a loss of well over a cent against the US dollar, but at least we remained above the $1.50 mark with an exchange rate of $1.5012. Elsewhere we were down by three quarters of a cent to 1.1104 against the Euro, so that was another disappointment for the British pound. We were also down by 0.099 against the Hong Kong dollar, leaving us on a rate of 11.653 at the end of the week.
The one vague improvement at the end of the second day last week was an increase to 2.1292 against the New Zealand dollar. But the increase really was only very slight. And we still experienced a dip against the Aussie dollar as we managed to drop a total of 0.0093 all in all, leaving us on 1.6370 at the end of day two.
So how did the rest of the week pan out? Let’s find out now as we move on to the exchange rates in play for the last three days of last week.
Our first task is to see whether the British pound could pick things up against the US dollar. The starting rate here is 1.5012, but just one day later that dropped to 1.4909. So were we destined to end the week below the $1.50 level after all?
Thursday brought a little improvement but little really was the word. By the end of the day the exchange rate had crept up just a little to 1.4932. And if we were hoping for a valiant effort on Friday we were in for a disappointment. By the time the markets closed the pound was even lower on a dismal 1.4830. It seems the effects of the lacklustre Budget and the forthcoming Election could be hammering the pound’s chances of doing well at the moment.
Elsewhere in the currency markets could it do better against the Euro? Last time we left it on 1.1104 so let’s hope we could see out the week in better form here at least. There was a slight surge upwards on Wednesday as the pound made it up to 1.1178. Another improvement was in store on Thursday but it was a much smaller one, leaving us on 1.1180 at the end of the day. But the final piece of news for the week was not good, as we dipped back to 1.1106. At least that left us marginally better off than we had been on Tuesday night.
As far as the Hong Kong dollar was concerned, the pound was on the back foot when it closed out Tuesday night on 11.653. And once again the remaining days of the week were not looking good either. The following day we dived down to 11.572 and although there was a good jump up to 11.590 on Thursday this was one day too soon to be worth celebrating.
And indeed this was the case, because on Friday the pound ended up back down to 11.511. So once again we were finishing a week on a bad note.
Let’s see what happened with the New Zealand dollar now, as this gave us the only marginal increase for the first two days of last week. From 2.1292 on Tuesday night we then found ourselves on 2.1272 the night after, so things were not looking good overall.
This certainly turned out to be the case as the pound dropped further to 2.1038 on Thursday evening, before rallying ever so slightly to 2.1073 on Friday. It didn’t look as though we would achieve anything of note as the week came to a close.
Finally there is Australia to look at. Last time the British pound managed to finish Tuesday evening on 1.6370, having lost nearly a cent during the first two days of the week. There was a marginal increase to 1.6381 on Wednesday, but given the other results so far this week things were not looking good.
And we did lose more ground the following day too, as we finished on 1.6345 on Thursday evening. However the biggest surprise was saved for last, as we managed to achieve a rate of 1.6412 on Friday evening – our only good result to close the week with.
From 0.7688 on Tuesday evening the New Zealand dollar managed to go up to 0.7788 on Friday evening.
It went from 1.0190 on Tuesday evening to a much better exchange rate of 1.0275 on Friday night.
It was an up and down time though. The Canadian dollar closed on 1.0394 on Tuesday night, before climbing to 1.0507 by Thursday evening. It then dipped back to 1.0411 on Friday.
Greece is having troubles of its own at the moment, and it is these troubles that are contributing to the British pound’s bad performance against the Euro. You can read more about this particular currency news story at the Reuters website. We will keep you posted on more currency news as and when it happens.
So it was another disappointing round of results for the pound for the most part. The currency is definitely struggling at the moment, but it isn’t likely we will see any real improvement until after the election. The Budget didn’t help matters but there is no doubt that the election is overshadowing a lot of the pound’s performances of late as well.
We’ll be back soon to reveal more about how the pound is faring on the currency markets.