Pound, euro weaker versus USD

The pound was weaker in relation to the euro and the dollar Tuesday while the euro declined against the greenback after both home and retail sales were down again in the UK and as an official of the European Central Bank expressed is view that the ECB will soon cut its forecasts for growth and inflation in the Eurozone, clearing the way for more interest rate cuts there.

During the morning session in New York, the pound traded at 81.5p to the euro while it took $1.5471 to buy a pound and $1.261 to buy a euro.

Meanwhile, the Japanese yen gained in relation to a number of currencies Tuesday after the optimism over China’s announced stimulus package receded, sending equities markets lower and scaring investors away from risky currency trades.

At just past 10:30 a.m. in New York the yen traded at ¥97.645 to the US dollar and at ¥123.1303 to the euro, while it was at ¥44.118 to the Brazilian real and at ¥9.4807 to the South African rand.

These moves came ahead of a meeting of the G20 nations, scheduled to begin Friday in Washington, D.C., to address the current global financial crisis.

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