Breaking News
Investing Pro 0
Cyber Monday Extended SALE: Up to 60% OFF InvestingPro+ CLAIM OFFER

Sterling rises against the euro after Western sanctions on Russia

Economy Feb 28, 2022 15:35
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: Pound and U.S. dollar banknotes are seen in this illustration taken January 6, 2020. REUTERS/Dado Ruvic/Illustration//File Photo
 
BAC
-2.87%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
BP
-1.62%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
LLOY
-1.66%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Samuel Indyk

LONDON (Reuters) - Sterling rose against the euro but was little changed against the dollar on Monday after Western nations imposed tough new sanctions on Russia for its invasion of Ukraine.

Western allies acted over the weekend to block certain Russian banks’ access to the SWIFT international payments system and announced plans to implement restrictions on the Russian central bank’s international reserves.

Against the euro, sterling was up 0.5% at 83.64 pence at 1515 GMT as the single currency weakened following the sanctions.

Sterling recovered against the dollar to trade broadly unchanged at $1.3419 as ceasefire talks between Russian and Ukrainian officials began at the Belarussian border.

"GBP has been holding up surprisingly well - given that it is normally more sensitive to financial developments than others," ING Global Head of Markets, Chris Turner told clients.

"Investors will be interested to see whether BP (LON:BP)'s planned sale of its stake in Rosneft has any FX implications", he added.

Energy company BP said it plans to exit its Russian oil and gas investments, the most aggressive move yet by a company in response to Moscow's invasion of Ukraine.

The impact of the invasion on the Bank of England’s future path for interest rates continues to be a theme in the near-term.

Bank of America (NYSE:BAC) said they observed a concerted pushback on market rate hike pricing last week, with a majority of rate setters appearing to be against hiking in 50 basis point increments.

BoE policymakers Michael Saunders and Catherine Mann are scheduled to speak on Tuesday followed by speeches by Silvana Tenreyro and Jon Cunliffe on Wednesday, the latter on financial stability.

"Michael Saunders on Tuesday will be the key one to watch, as he voted for a 50bp hike and generally gives clear views," Bank of America strategists said.

In the meantime, the British public’s expectations for inflation for the coming 12 months hit a record high of 5.6% in February, according to a Citi/YouGov survey.

Separately, data showed on Monday that business confidence in the UK rose by five points to a five-month high of 44, according to the Lloyds (LON:LLOY) Business Barometer.

The survey of 1,200 companies also showed that 25% of businesses planned to increase pay by 1%-2% over the next 12 months, while 23% planned 2%-3% pay rises. The survey, however, was conducted during Feb. 1-15, before Russia’s invasion.

Sterling rises against the euro after Western sanctions on Russia
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email