Sterling's vulnerability is exacerbated by dollar strength

Sterling's vulnerability is exacerbated by dollar strength

31 Mar 2020 03:57 PM
 

The pound fell against the dollar on Tuesday as the U.S. currency gained strength due to its safe-haven properties amid the spread of the coronavirus.

Concerned by the number of growing COVID-19 cases in the United States, where the reported cases are nearly double those in China, investors bought the dollar against sterling and other major currencies considered riskier than the U.S. currency.

The pound traded 0.7% lower at $1.2330 It was weaker against the euro as well, trading down 0.1% at 88.99 pence.

The pressure on sterling came also from the fact that confidence among British companies slumped in the second week of March as the coronavirus crisis gathered pace, but before the government shut much of the economy to slow its spread, according to a survey published on Tuesday.