By the end of the week US dollar had touched a high of 120.69 yen.
Range for the week: 117.00 - 122.00
Sterling
At the start of the week, sterling was on the front foot against the euro and dollar largely in a technical move as a lull in Britain's political and economic calendar encouraged investors to reverse bets against the currency.
As the week progressed sterling gave way to the broadly stronger dollar as anticipation of favourable US data buoyed the greenback across the board. Trading was so dominant by movements in the euro/dollar that an improvement in both British consumer confidence and retail sales failed to lift sterling even against the euro.
The July Charted Institute of Purchasing and Supply/Reuters' Purchasing Managers' Index for manufacturing rose to 50.9, it's highest level since May 2002, from June's upwardly revised 49.5. The news marked a return to growth in the sector for the first time in nine months and helped push sterling to a two-week high against the euro.
Recent UK data has been suprising on the upside, especially on the consumer side, forcing markets to scale back interest rate cut expectations. The Bank of England cut interest rates last month to 3.5 percent and recent retail sales and consumer borrowing data means most economists think interest rates have hit their floor in the current cycle.
Range for the week: $1.5950 - 1.6450
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Major rally for the US dollar (page 3 of 3)
- Saturday, August 02 - 2003 at 19:43
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This article was updated on Mon Aug 04 2003.
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