Sterling, euro higher on session

The euro was at a record high of ¥164.42 versus the yen during Monday trade and was up 0.1 percent to ¥164.23 at mid-session in New York. Sterling was 0.3 percent higher versus the yen at ¥242.58, a 15-year high. The yen’s declines came on continuing investor demand for carry trades as they continued to seek out risk despite the day’s declines in China’s equities markets.

Sterling was higher on the session ahead of the next meeting of the Bank of England on Thursday, where most analysts think the Bank’s Monetary Policy Comittee will hold interest rates at 5.5 percent. Most also expect, however, that rates will rise by 25 basis points to 5.75 percent by August. At midday in New York, sterling was 0.1 percent higher against the euro to £0.6773 and it had added 0.5 percent to $1.9924 versus the US dollar.

The euro also gained on the US dollar, adding 0.3 percent to $1.3491, while the Canadian dollar was higher against the greenback again as well, adding 0.3 percent to C$1.0550 versus the US currency to another 30-year high.

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