Britain’s Pound Goes Higher after Japan’s Intervention

The Great Britain’s pound advanced today after the Japanese government performed the intervention to stem the yen’s gains, increasing the attractiveness of the currencies, perceived to be riskier.

Henrik Gullberg, the currency strategist at the Deutsche Bank AG, said:

There’s an improvement in risk appetite after the intervention of Japan overnight. It highlights that further easing won’t just be felt in the U.K. and that’s helping the pound.

Britain’s currency rose versus all of its 16 most-traded counterparts. The yield for Britain’s government bonds maturing in 10 years went up 3 basis points to 3.09 percent. Mervyn King, the Governor of the Bank of England, said that the government needs to devise the “credible” deficit-cutting plan to avoid the high borrowing costs.

GBP/USD went up from 1.5537 to 1.5617 as of 20:06 GMT after it reached earlier the intraday low of 1.5448. GBP/JPY soared from 129.00 to 133.68.

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