Sterling Bounces Back After Early Drops Against Majors, Monday, August 13, 2007 5:09:45 PM

The British pound experienced some early-morning weakness against the other majors on Monday in New York, but bounced back later in the day. The sterling reached a six-week low against the dollar and also fell against the euro and yen. It was able to rally to make up significant ground in the later morning and into the afternoon. Trading took place as investors considered data showing the UK factory-gate inflation as well as input price growth slowed in the month of July.

The sterling moved to a six-week low against the dollar Monday in New York. The pound fell in the early morning, reaching as low as 2.0085 at 5:45 a.m. ET. It edged back higher for the next several hours but then slipped again in the late morning. The currencies were flat in the afternoon and traded at 2.0125 at 5 p.m. ET. Investors considered data showing the UK factory-gate inflation as well as input price growth slowed in the month of July.

The sterling bounced back against the euro on Monday in New York and was up for the day. The pound fell to a five-day low of 0.6794 at 6 a.m. ET, but then rebounded from there. It moved higher or the rest of the morning and into the afternoon, reaching 0.6757 at around 3:45 p.m. ET. The pair moved at 0.6762 at 5:05 p.m. ET. The sterling was down against the yen on Monday in New York. The British currency dropped beginning at around 2:30 a.m. ET and got as low as 236.51 at 6:15 a.m. It edged back higher for the next several hours to recoup about half of its losses. Trading was sideways in the afternoon and the pair traded at 237.99 at 5:05 p.m. ET.

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