Dollar and sterling come under attack
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.The mark rose to new 1995 highs against other European currencies and the dollar weakened across the board yesterday, writes Diane Coyle. Dealers said the assault on the dollar and other currencies in favour of the mark would resume with new vigour when the US market reopened after yesterday's public holiday.
The markets will test whether they can goad the US Federal Reserve and other central banks into co-ordinated intervention to prop up the dollar.
So far only the Bank of Japan has stepped in to buy the US currency, which fell from Y97.50 to Y97.15 - not far above its all-time low of Y96.60.
The last attempt at co-ordinated intervention took place last June, and the Federal Reserve tried again to support the dollar in November when it fell below DM1.50 and Y97
The results from the local election in Hesse, which marked a success for the German government's coalition partner, was yesterday's excuse in the foreign exchange markets for favouring the German currency. It rose 1.5 pfennigs to DM1.4733 against the dollar.
The British Government's various political troubles, including news of the death of Conservative MP Sir Nicholas Fairbairn, have put the pound firmly out of favour. It fell on opening from its previous close of DM2.3466 to trade just above DM2.33 throughout the day.
Political uncertainty was also the explanation for weakness of the French franc, while the Italian lira is vulnerable because of Italy's unstable politics and unstable government finances.
Hamish McRae, page 26
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments