Euro, sterling plunge on soft business activity data, UK budget woes

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NEW YORK, Sept 24 — The euro and sterling plummeted to fresh 20-year and 37-year lows against a surging US dollar on Friday after surveys showed the downturn in business activity...

NEW YORK, Sept 24 — The euro and sterling plummeted to fresh 20-year and 37-year lows against a surging US dollar on Friday after surveys showed the downturn in business activity across the euro zone and Britain accelerated this month and the economies were likely entering a recession.

British bond yields also surged on Wednesday as prices sank. Benchmark UK 10-year yields soared to 3.829 per cent, a level not seen since April 2011. Earlier in the session, UK PMI figures showed the downturn in Britain’s economy worsened this month as companies battled soaring costs and faltering demand.dropped 1.5 per cent to US$0.9689, after earlier hitting its lowest level since October 2002 of US$0.9669.

was 0.6 per cent lower at 143.30 per US dollar, but had its first weekly gain of 0.3 per cent in more than a month after Japanese authorities intervened in markets on Thursday to support the currency for the first time since 1998.

 

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