Tuesday, December 16, 2008

Pound Continues to Fall Against Euro

Pound Sterling has fallen to a new low against the euro. The US dollar also fell against the euro due to interest rate cut talks. For every one pound it costs 1.1084 euros, or for every euro its 90.22 pence. The dollar fell to $1.3662 against the euro and $1.5294 against the British pound.

The decline in the dollar is due to the uncertainty of the US carmakers and the state of the overall economy. A bailout plan is defiantly weighing hard on the value of the US dollar. The value of the euro was supported by speculations that the ECB will not change interest rates too much in the future.

1 comment:

Nate Scott said...

This drop can be seen as bitter-sweet. It allows the U.S. to continue to export cheaply to these foreign markets. I think that should be one of our main goals. I think the U.S. needs to increase it's manufacturing output by increasing exports and this should help.