Yen weakens versus US dollar, euro

Sterling weakened against both the US dollar and the euro on Thursday. The Bank of England raised interest rates to 5.5 percent, but more important in the decline of the pound was UK trade data that was weak and industrial production numbers that were lower than had been hoped. In mid-afternoon trade in New York, sterling had lost 0.5 percent to £0.6815 versus the euro, while it was down 0.5 percent to $1.9820 in relation to the greenback.

The euro dropped 0.2 percent versus the US currency, to $1.3505 after the European Central Bank held interest rates at 3.75 percent and some analysts speculated that the Bank’s current cycle of policy tightening although at least one more rate hike, in June, is expected. Analysts focused on language in the remarks that called near-term risks for inflation “broadly balanced”.

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