Pound stronger versus most major currencies

The pound strengthened versus most major currencies Monday, but some analysts said that gains will likely be limited by the possibility that the Bank of England‘s Monetary Policy Committee could cut interest rates when it meets later in the week.

Sterling touched a two-week high in relation to the US dollar, rising to $1.9761 to the pound in late afternoon trade in London and it reached $1.9764 to the dollar at just past noon in New York, while it traded at 75.05p to the euro.

The South African rand was steeply lower versus the US dollar on concerns that economic growth in the African nation will slow due to closures and slowdowns in mining and manufacturing caused by continuing power shortages.

The rand fell as low as R7.4482 to the dollar but was back to R7.4375 to the dollar by early afternoon trade in New York.

The yen also weakened on Monday as carry trades increased after equities markets showed less volatility than they have recently.

The biggest decline for the Japanese currency came versus the Australian dollar as it traded at ¥97.0333 to the Australian currency at just past noon in New York while at the same time the yen traded at ¥106.7650 to the US dollar, at ¥158.3538 to the euro, and at ¥211.0101 to the pound.

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