Pound gains on USD, euro

The pound was stronger versus the dollar and the euro Monday on the possibility that UK inflation in May was above the target set by the Bank of England.

It took $1.9644 to buy a pound, while the British currency was at 78.81p to the euro.

The yen, meanwhile, saw declines as investors showed more enthusiasm for risky carry trades financed with the Japanese currency.

While the yen traded close to even versus the US dollar at ¥108.1750, while it dropped to ¥167.4603 to the euro, to ¥212.4991 to the pound and to ¥81.388 to the New Zealand dollar.

The US dollar weakened on the news that the New York Federal Reserve’s general economic index fell to minus 8.7 in June from minus 3.2 in May.

The greenback was down versus the euro but had risen back to Friday’s close at $1.5480 by close to noon in New York.

A new rise in the price of crude oil also hurt the dollar, especially against currencies from oil-producing regions, with the Canadian dollar up to C$1.0217 to the greenback and the Norwegian krone traded at kr5.1760 to the dollar in late morning trade in New York.

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