Corporate foreign exchange news
Dollar climbs against pound
Monday, 17 August 2009 11:35:55 GMT

The dollar extended gains against the pound this morning (August 17th) after weak housing data provoked a flight from sterling.Figures from Rightmove published today showed that house prices are down 2.2 per cent month-on-month, expunging the gains witnessed in July.A returning sentiment of risk aversion also pushed sterling downwards, while the dollar was supported by safe-haven trading.On Friday (August 14th), the greenback made headway against the euro after a US report showed an unanticipated dip in consumer confidence last month, providing greater support for haven currencies such as the dollar and the yen.Meanwhile, Dow Jones reported that investors were also encouraged by a separate report showing that consumer prices in the US remained stable last month, supporting statements from the Federal Reserve pledging to keep interest rates pegged back for a sustained period."Risk aversion is back with the dollar strengthening against the euro and British pound but weakening against the Japanese yen," commented Kathy Lien, director of currency research at Global Forex Trading.

