Pound dropped against Yen to record level

Pound dropped against Yen to record level

01-21-2009 16:17

Today, the British pound declined against the Japanese yen to a record level and fell considerably against other main currencies while market participants fear that the UK recession will extend further which leaves the Bank of England no other option than cut rates even more.

The pound fell against the US dollar to the weakest level since June 2001 and declined against the euro for the fourth consecutive day. The yen rose to a record level against the New Zealand dollar and did the same against the pound as the yen rose against all high-yielding currencies.

This Wednesday the Bank of England released the minutes of the last Monetary Policy Committee meeting. Analysts expect the minutes to prove that the Bank of England still has very strong bearish sentiments. It is to be expected that the pound will soon reach a strong support level against the American dollar and therefore the traders should be alert.

GBP/ JPY fell from 124.39 to 123.74, the daily minimum level was at 122.94; an all-time minimum level. EUR/ GBP went up from 0.9273 to 0.9368 while GBP/ USD dropped from 1.3870 to 1.3775 (Wednesday 8:53 GMT).