Pound hurt by Bank of England credit announcement

The pound dropped Thursday to another new low in relation to the euro at 74.81p, but it recovered a bit to trade at 74.62p to the euro at just past midday in New York.

The decline came on the news that the bank of England will cut credit availability to consumers and businesses as the new year begins.

The yen lost ground to the Brazilian real and the Norwegian krone after gains in US equities markets encouraged investors to look for more risky investments.

In early afternoon trade in New York the yen traded at ¥62.115 to the real and at ¥20.491 to the krone, while it was at ¥161.6228 to the euro and at ¥216.6015 to the pound.

The US dollar was lower in relation to the euro early in the session, when it dropped to $1.4781 to the euro, but it regained some of its declines later in the day.

The dollar was helped by an announcement from the United Arab Emirates that it will keep its currency pegged to the dollar, and by a private employment report that claimed more jobs had been created in the US in December than analysts had anticipated.

At just past noon in New York, the dollar traded at $1.4732 to the euro while it traded at ¥109.7050 to the dollar and at $1.9744 to the pound.

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