Sterling stronger on house prices

Sterling strengthened on Thursday, adding 0.2 percent versus the euro to £0.6995 and gaining 0.5 percent in relation to both the US dollar and the yen, to $2.0250 against the greenback and to ¥233.75 versus the yen after a survey from Nationwide building society showed that house prices were higher in September.

The US dollar was at 78.159 on the dollar index, which tracks the dollar against six leading currencies, its lowest level since the Federal Reserve introduced the index in 1973.

US housing prices hurt the greenback when new data showed that new home sales there fell by 8.3 percent in August.

The dollar dropped 0.3 percent to $1.4170 versus the euro in midday trade in New York after falling to a new low of $1.4189 earlier in the session, but it managed to trade even at ¥115.45.

The yen weakened otherwise as investors sold it in order to pursue more risky investments, dropping 0.3 percent to ¥163.60 versus the euro, falling 0.6 percent against the Australian dollar to ¥101.84 and retreating by 0.9 percent to ¥86.67 in relation to the New Zealand dollar.

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