Sterling gains ground reviving from Brexit
On Tuesday, the British pound managed to stabilize, thus reviving from Brexit, which caused steep drops last week.
Other key currencies stood still too, while China’s major bank again weakened the Yuan against the U.S. dollar.
The British currency gained 0.7%, hitting $1.3314 from the New York close, after a 11.5% slump a couple of days ago. On Monday, Standard & Poor’s as well as Fitch Ratings each downgraded their credit ratings for Great Britain.
Notwithstanding Tuesday’s moderate surge, the British pound still keeps to its 1985 lows.
The common currency also advanced 0.2%, getting to $1.1041, although it’s still down 3.5% since Great Britain voted to leave the European Union.
Investor confidence was getting back in Asia after Friday’s plunge in response to Brexit’s outcome. After the initial nervous reaction, the market realized the implications mightn’t be as bad as expected. So the financial markets have already seen the worst reaction.