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LONDON (Reuters) – It hit Tuesday its lowest level of the last 28 months against the US dollar as investors take into account a further decline in negative euro zone interest rates.
The money markets have given hope that the European Central Bank will reduce interest rates by 20 basis points at its meeting next week to 83% and current rates are -0.4%.
The European Central Bank is also almost committed to introducing a new quantitative easing package, as economic growth has slowed and German manufacturing has entered recession.
A survey conducted on Monday showed that the European manufacturing sector was contracting for the seventh consecutive month, reinforcing the expectations of an easing policy of the European Central Bank.
At the last exchange, the euro fell 0.3% to 1.0937 dollar. The single European currency fell in Asian trade to 1.09305 USD, its lowest level since mid-May 2017 after crossing the high level of 1.1 thousand USD last week.
Sterling fell to its lowest level in nearly three months on Tuesday, as British lawmakers were ready to vote on the first phase of a plan that would prevent Prime Minister Boris Johnson from moving toward a withdrawal from the country. 39 European Union without an agreement.
The pound fell 0.7% to $ 1 1963 and fell to $ 1.1959, its lowest level since October 2016.
Faced with the euro, the pound hit a two-week low of 91.74 pence.
(Prepared by Hala Kandil for the Arab Bulletin – Edited by Moataz Mohamed)
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