The currency is down against the dollar again at $1.3535 from $1.3616 late Fri, as investors remain uncertain over reports of possible aid package to Greece. The slide in the pound isn’t helping the euro either.
The pound slipped sharply, down more than 2% to its lowest level since May, at 1.4904 from 1.5251, as continued concern about UK fiscal position and uncertain political picture weigh on the currency.
“While we have been decidedly sterling negative, the move is taking place much quicker than we (or any one) appears to have anticipated,” notes Marc Chandler, at Brown Brothers Harriman. “Both political and economic considerations are behind sterling’s slide and M&A flows are not seen as currently helpful.”
As for Greece, Greek financial markets are stronger on the reports that Germany and France were working on an aid package for Greece and that the government would soon announce new measures to tackle its budget deficit.
