15th March 2012 Pound Sterling Exchange Rates:
Today’s Pound to Euro Exchange Rate is 1.1987 – 0.27%
Today’s Pound to US Dollar Exchange Rate is 1.566 + 0.10%
Today’s Pound to Canadian Dollar Exchange Rate is 1.556 + 0.03%
Today’s Pound to Japanese Yen Exchange Rate is 130.499 – 0.54%
Today’s Pound to South African Rand Exchange Rate is 11.963 – 0.59%
The Pound has declined against the major currencies today following a credit rating warning from Fitch. The credit-rating agency Fitch have followed in Moody’s recent footsteps and placed the UK on ‘negative outlook’. They warned that there is a ‘slightly greater than 50% chance’ of Britain losing its covetous AAA credit rating within the next two years. Fitch said a weaker than expected recovery in the economy could foil government efforts to transform debt into growth.
Analysts at Fitch announced that fragile government tax and spending forecasts could be derailed as a result of the permanent damage inflicted upon the economy’s supply capacity by the Eurozone debt crisis and ensuing credit crunch.
“The UK has very limited fiscal space to absorb further adverse economic shocks in light of such elevated debt levels and a potentially weaker than currently forecast economic recovery.”
Deputy Prime Minister Nick Clegg took the decision from Fitch as a warning that the UK must stick to its austerity measures in order to improve economic confidence and inspire a return to growth. Talking at an annual British Chambers of Commerce conference, Clegg pointed out how a positive shift in sentiment can already be seen: “Towards the end of last year, the UK saw business confidence drop, but this week several business surveys suggest it is beginning to bounce back.”
Clegg described the 2008 financial crisis as a ‘heart attack’ and stressed that there is no ‘magic wand’ to heal the resultant deep fissures in the UK economy, which shrank by -0.2% late last year; improved consumer spending and strong export growth were no match for huge slashes in business investment.
Clegg’s rhetoric was severe, but the simple headline ‘Fitch put UK’s AAA credit rating on negative outlook’ was enough to send the Pound spiralling downwards in the marketplace today.
The Swiss National Bank announced its continuing commitment to maintaining its EUR/CHF cap at 1.20 which sent the Swiss Franc higher.
Today’s Pound to Swiss Franc Exchange Rate is 1.447 – 0.72%
Inflation expectations have been raised in Australia as consumers become more aware of the massive easing cycles being undertaken by central banks, and this could see higher rates in Australia. The antipodean currencies have rallied on the back of this news.
Today’s Pound to Australian Dollar Exchange Rate is 1.490 – 0.61%
Today’s Pound to New Zealand Dollar Exchange Rate is 1.916 –1.09%