Wednesday, January 21, 2009

FOREX-Dollar gains, pound suffers on UK bank woes

* Pound tumbles 3.5 pct vs dollar to 7-1/2 yr low

* Euro drops to 6-week low vs dollar, dlr index at 6-wk high

* Stronger-than-expected German ZEW fails to lift euro

* UK banking woes weigh on pound; euro hit by grim outlook

(Changes byline, adds quotes, updates prices)

By Naomi Tajitsu

LONDON, Jan 20 (Reuters) - The dollar climbed broadly on Tuesday, boosted by sterling's tumble to a 7-1/2 year low on UK banking sector concerns, while the view that the euro zone will suffer a deep recession pushed the euro to a six-week low.

The dollar hit its strongest level against a currency basket since early December, with market participants also saying that euphoria ahead of Barack Obama's inauguration as U.S. president had increased short-term demand for the U.S. currency

No comments:

Post a Comment