Corporate foreign exchange news

Pound to weaken on foreign exchange market

Thursday, 01 October 2009 10:14:04 GMT

The pound will continue to weaken in international currency trading through 2010, one commentator predicts.
Reuters columnist James Saft writes today (October 1st) that the UK is also likely to witness sustained government intervention in debt markets through its quantitative easing programme, while economic growth will remain subdued.
"While the outlook for losses globally has improved as economies stabilise, Britain's banks are in a relatively poor position, at least compared to their US peers," he comments.
Mr Saft concludes by indicating that foreign exchange brokers are now sceptical that the Bank of England may be engineering a weaker pound to bolster export trade growth.
The speculation follows a statement from Bank governor Mervyn King highlighting the beneficial role that a weak pound has had in facilitating recovery.
However, after a sharp selloff across all sterling pairs, Mr King was insistent that the central bank would not endeavour to keep the currency suppressed by artificial means.ADNFCR-2522-ID-19387553-ADNFCR
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