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Pound creeps up on dollar as Federal Reserve discuss credit crunch
28.01.09
The pound rallied for a third day against a weakening dollar today as the US Federal Reserve met to discuss new ways to ease the credit crunch.
Sterling was up 0.63 of a cent to $1.4233, having crashed to a
23-year low of $1.35 on Friday. However, it was down 0.35 of a cent against the European single currency to €1.0725, making one euro worth 93.24p, as fears remained over the UK economy.
The Fed ends it two-day policy meeting tonight and could unveil new steps to ease the credit crunch, having already reduced interest rates to near zero. The Bank of England looks set to cut UK rates from 1.5% to 1% or less next week.
