Posted by Allison on 6 June 2011, 10:53
It’s time once again to see how the British pound has been getting along on the currency markets. We have consulted our currency converter and got all the latest figures for our report. Let’s look at the week’s results right now.
The pound did well against the US dollar last time, ending on 1.6456. But could it replicate that this week as well?
By the last day of May the pound had risen slightly to 1.6495. But unfortunately it climbed no higher, instead taking a tumble through the last couple of days of the week. This left us on 1.6324 at the close of play, so we lost out there.
Could we achieve anything better against the Euro though? Again we had a good week here last time, climbing to 1.1536 in the process. But we had no improvements to celebrate this time around. Instead we managed to fall every single day until we closed out the week on a disappointing 1.1267.
Was the picture any better in Hong Kong? We were starting on 12.805 here but the picture was similar to what had happened in the US. We climbed over the first couple of days to 12.829 but then we fell back to 12.697 by the end of the week. This was another disappointing exchange rate in the overall picture.
Let’s move on to the New Zealand dollar now to see if the pound could achieve anything better there. We were starting from 2.0163 but by the 1st June we had dipped below the two dollar level to sit on 1.9955. Fortunately by the time two days had gone past we had managed to climb back up to 2.0123, so at least we recovered some ground there.
Finally we have the Australian dollar to contend with. Here we were starting from 1.5395 and just forty eight hours later we had improved the figure to 1.5485. Then the next day we saw that drop to 1.5289. Finally we finished the week on 1.5314.
From a starting weekly rate of 10.684 the pound eventually dropped to 10.577 here.
The currency for Denmark got the better of us as well last week. We fell from a starting rate of 8.6014 to 8.4001.
It was bad news all round last week as the British pound fell from 2.9263 to 2.9161 over the course of the week.
If you have a free subscription to FT.com you may have read this story last week. It concerned the performance of the Swiss franc – more properly the excellent performance of the currency. The struggles of the Euro have been partly responsible for the Swiss currency doing so well, as people see it as a stronger and safer currency than the Euro. It will be interesting to see if this pattern should continue.
So it has been one of the bad weeks we occasionally see as far as the pound is concerned. We have little to celebrate with the exchange rates we have been seeing. We can only hope that it may strengthen a little once June gets further underway. Having said that though, the previous weeks have not been very good for the pound so perhaps we are in for a longer spell of troubles than we would like.
The turmoil in the Eurozone has not led to any good news for the pound either. As we saw, the pound lost a significant amount of ground here, making us wonder what will happen next week. Perhaps we will be able to make it back again, since the Euro is having troubles of its own. We shall report back next week with the answer.