Euro, sterling feel the heat over Brexit vote, dollar enjoys reprieve

The euro plunged to a fresh three-year low of 120.315 yen on Thursday before paring losses.
The dollar index was driven by a bearish turn in the Euro. File Photo

The dollar index was on track for a modest weekly gain on Friday, having bounced off this week’s one-month lows as the euro took a heavy spill while sterling stayed under a cloud on jitters over the upcoming Brexit vote.

The dollar index added 0.3 per cent to 94.185, pulling away from Wednesday’s trough of 93.425, its lowest since May 11, and was up 0.2 per cent for the week.

Driving the index’s rise was a bearish turn in the euro, which slid 0.2 per cent to $1.1298, further distancing itself from the previous session’s one-month high of $1.1416. The European currency was poised to slip 0.6 per cent for the week.

A Reuters report on Commerzbank looking to put billions of euros in vaults rather than pay a penalty charge for parking them with the European Central Bank appeared to have unsettled an already nervous market.


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s