Pound, euro push higher ahead of knife-edge Brexit vote
[NEW YORK] The British pound and the euro both strengthened on Wednesday on the eve of Britain's European Union referendum, amid market hopes that voters will opt to remain in the bloc.
The "Leave" and "Remain" sides were virtually even in polls the day before Thursday's vote, and markets were girded for shock if the "leave" camp wins.
Breaking with the European Union, economists have warned, could cause significant economic disruption, especially in trade, for both sides and sharply slow the British economy in the short run.
At 2100 GMT, the pound was up 0.7 per cent to US$1.4737, at the high end of the narrow trading for the pair since the beginning of the week.
Likewise, the euro added 0.5 per cent against the US dollar to US$1.1313.
The dollar's relative weakness, despite its clear safe-haven attraction in the Brexit vote, was due in part to the bearish tack of Federal Reserve Chair Janet Yellen in two days of testimony to Congress on Tuesday and Wednesday.
She said the US economy faces "considerable uncertainty" and sounded less confident in a rebound in inflation and further strengthening of the US employment market than she had a month ago.
AFP
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Banking & Finance
Seventh money laundering accused to plead guilty on May 23
DBS hires chief of Ping An’s tech group to fix outage issues
Indian banks to step up IT spends as regulatory scrutiny rises
Swedish central bank lowers key rate, sees two more cuts this year
UOB CEO ‘cautiously optimistic’ on 2024; Q1 profit down 1.6% to S$1.49 billion
Australia lending rules make banks go ‘too hard’ on due diligence: Westpac