Advertisement
UK markets closed
  • FTSE 100

    8,213.49
    +41.34 (+0.51%)
     
  • FTSE 250

    20,164.54
    +112.21 (+0.56%)
     
  • AIM

    771.53
    +3.42 (+0.45%)
     
  • GBP/EUR

    1.1652
    -0.0031 (-0.26%)
     
  • GBP/USD

    1.2546
    +0.0013 (+0.11%)
     
  • Bitcoin GBP

    50,984.23
    +2,368.45 (+4.87%)
     
  • CMC Crypto 200

    1,359.39
    +82.41 (+6.45%)
     
  • S&P 500

    5,127.79
    +63.59 (+1.26%)
     
  • DOW

    38,675.68
    +450.02 (+1.18%)
     
  • CRUDE OIL

    77.99
    -0.96 (-1.22%)
     
  • GOLD FUTURES

    2,310.10
    +0.50 (+0.02%)
     
  • NIKKEI 225

    38,236.07
    -37.98 (-0.10%)
     
  • HANG SENG

    18,475.92
    +268.79 (+1.48%)
     
  • DAX

    18,001.60
    +105.10 (+0.59%)
     
  • CAC 40

    7,957.57
    +42.92 (+0.54%)
     

Pound tumbles to 6-month lows vs dlr on funding concerns

* Graphic: World FX rates in 2020 http://tmsnrt.rs/2egbfVh

* Graphic: Trade-weighted sterling since Brexit vote http://tmsnrt.rs/2hwV9Hv

LONDON, March 18 (Reuters) - The pound fell to a six-month low against the dollar and weakened against the euro on Wednesday as investors focused on the economic impact of the coronavirus.

News that Britain would launch a 330 billion-pound ($399 billion) lifeline of loan guarantees and provide a further 20 billion pounds in tax cuts, grants and other help for businesses facing the risk of collapse was shrugged aside by traders.

Growing concern that funding availability will remain under pressure for the foreseeable future led traders to sell the British currency against the greenback.

ADVERTISEMENT

"The main reason for dollar demand is liquidity concerns as in volatile times, companies and investors need dollars to settle transactions and as long as these concerns persist, we expect the pound to remain on the back foot," strategists at UBS Wealth Management said in a note.

Against the greenback, the British currency fell 0.4% to $1.1985, its lowest since September 2019 while against the euro, the pound weakened 0.4% to 91.70 pence. (Reporting by Saikat Chatterjee Editing by Nick Tattersall)