The Great Britain pound fell today as the talks about the anticipated bailout for Ireland undermined the demand for the currency as the safer asset. The decline hasn’t erased yesterday gains as the sterling surged on the yesterday’s session too high and attempted to continue its rally today before falling.
Brian Lenihan, Ireland’s Minister for Finance, said yesterday that the government would be glad to receive “substantial contingency capital funding”, which may reach “tens of billions” of euro. Tony Killeen, the Minister of Defense, also suggested that the nation are ready to loan. Currently the officials from the European Union and the International Monetary Fund are situated in Dublin in order to asses the Irish banks.
The experts are cautioning not to consider the bailout the “done deal”, while the markets behave as if it already has happened. The pound also declined after China’s central bank ordered the Chinese banks to increase reserves to safeguard against the possible
GBP/USD fell from 1.6038 to 1.5985 as of 20:54 GMT today. GBP/JPY dropped from 133.94 to 133.40.
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