Pound falls versus yen after Manchester blast

[TOKYO] The British pound sagged against the yen on Tuesday after a blast at a concert in the city of Manchester killed at least 19 people.

The euro hovered near a six-month high after German Chancellor Angela Merkel said the currency was "too weak". The pound shed 0.45 per cent to 144.07 yen, but otherwise the currency was fairly steady against its major rivals.

It was little changed against the dollar at US$1.2994. On Monday, the pound had lost about 0.3 per cent after polls showed a narrowing lead for Prime Minister Theresa May over her opposition ahead of elections next month.

Police said they were responding to reports of an explosion at a concert in the English city of Manchester where US singer Ariana Grande had been performing. At least 19 people dead and about 50 injured in what British police said was being treated as a terrorist incident.

The US dollar was down 0.2 per cent at 111.055 yen after a dip to 110.860 and the euro slid 0.2 per cent to 124.830 yen.

Ms Merkel said on Monday that the common currency is weak due to the European Central Bank's monetary policy, pointing out that this helped explain Germany's relatively high trade surplus.

The chancellor's comments provided fresh momentum to the euro, which has been on a bullish footing since the French presidential elections earlier this month. Upbeat euro zone data and a widening spread between the 10-year German and US government bond yields have also supported the currency.

REUTERS