Sterling, US dollar strengthen

The US dollar was stronger versus the euro on Tuesday, but held steady against the yen, helped by bond yields that were higher on the session. The greenback was at ¥121.70 versus the yen, while it gained 0.2 percent to $1.3325 against the euro.

Sterling made gains after the Bank of England’s governor warned that the risk of inflation is still high and that interest rates could rise again. His comments came despite new data that showed annual consumer price inflation lower in May than it was in April. By midday trade in New York, sterling had added 0.2 percent to ¥240.14 versus the yen while it had gained 0.3 percent on the US dollar to $1.9740 and was up 0.5 percent to £0.6750 in relation to the euro.

The New Zealand dollar was virtually steady versus both the US dollar and the yen after Monday’s declines. The kiwi sat at ¥91.45 versus the yen and at $0.7515 against the greenback.

Meanwhile, the Swedish krona was lower after consumer price inflation in Sweden dropped in May, raising speculation that interest rates will remain at their present level for the time being. The krona was 0.6 percent lower in relation to the euro at SKr9.4030, while it fell 0.9 percent to SKR7.0590 against the US dollar.

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