Sterling holds above $1.30 as dollar weakness outweighs GDP slump
Wednesday,
12-Aug-2020
02:28 PM (IST)
Sterling held above $1.30 on Wednesday, clinging on to recent gains on the back of dollar weakness, which outweighed the impact of a record drop in Britain’s economic output. The economy shrank by 20.4% between April and June, when the country’s coronavirus lockdown was tightest, data showed on Wednesday, representing the largest contraction reported by any major economy so far. Sterling was steady at $1.3050, close to the five-month high of near $1.32 it rose to last week, and at 90.02 pence against the euro. June’s GDP data, meanwhile, offered the first window into the recovery as restrictions eased and the economy began to recoup of the losses, growing 8.7% month-on-month.
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