Pound strengthens on data

The pound gained on the euro and the US dollar Monday as a substantial boost in producer prices led to less of a chance that the Bank of England will cut interest rate next month.

The Office of National Statistics reported that UK producer prices were up 7.5 percent from last year, while April’s report on consumer prices is due tomorrow.

The pound traded at 79.19p to the euro and it took $1.9608 to buy a pound.

The US dollar was higher versus the yen but ground to the euro at just past noon in New York, where it cost ¥103.66 to buy a dollar but the dollar traded at $1.5527 to the euro.

The euro traded at ¥160.68, strengthening versus the Japanese currency.

The yen also lost ground to the South African rand, the Brazilian real, and the Norwegian krone with the yen trading at ¥13.619 to the rand, at ¥62.026 to the real and at ¥20.662 to the krone as investors returned to risk.

The Swiss franc was also weaker on the return to carry trades as it took SFr1.0450 to buy a US dollar and SFr1.6255 to buy a euro, while the South African rand strengthened on the return to risk and on rumors that a foreign buyer will purchase Africa’s biggest mobile phone operator.

The rand traded at R7.6535 to the greenback and at R11.83 to the euro at just past noon in New York.

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