On Thursday, the British pound fell to its lowest level since November 2023, trading at $1.2239 at the time, and was quoted at $1.2300 at the time of review.
Interest rates on government bonds have risen globally this week due to inflation concerns and changes in central banks’ interest rate cut expectations. In addition, uncertainty in the market is caused by the uncertainty of the president-elect Donald Trump future policy.
The interest rate on the British government bond rose to its highest level in more than 16 years, exceeding 4.9 percent earlier on Thursday, but at the time of the review, the interest rate was slightly in a downward direction. Concerns about the state of the country’s economy have grown.
Finance minister Rachel Reeves is at the same time facing the consequences if the situation continues. Britain has been struggling with slow economic growth and stubborn inflation for a long time.
At the time of the review, the interest rate on Britain’s 10-year government bond was 0.5 percentage points lower at 4.787 percent.
The interest rate on the two-year US government bond had decreased by 2.7 percentage points to 4.256 percent. The ten-year interest was at 4.651 percent, a decrease of four percentage points. Earlier in the week, the ten-year interest rate rose steadily towards the psychological five percent limit, but now the trend had turned downward.
The US interest rate market closes at 2:00 p.m. local time Jimmy Carterin because of the celebration of the funeral. Stock exchanges are closed on Thursday.
In Germany, the interest rate on the two-year government bond had risen by 0.7 percentage points to 2.203 percent. The ten-year interest rate was close to its closing level yesterday at 2.540 percent.
At the time of review, one euro equaled 1.03 dollars, 162.7 yen, 0.84 pounds and 11.5 Swedish kronor. The dollar was 157.8 yen and the pound was 1.23 dollars.
Source: www.arvopaperi.fi
