Pound Advances Versus Euro as Tension Subsides in Equity Markets
This article is for subscribers only.
The pound strengthened against the euro for a second day as demand for haven assets, such as Europe’s shared currency, fell after the central bank of China cut interest rates to shore up economic growth.
Sterling advanced from a level reached Monday that was its weakest in more than three months against the 19-nation single currency, when stock markets across the globe suffered selloffs as commodity prices slumped. The People’s Bank of China said on Tuesday it will cut its benchmark lending rate for the fifth time since November and lower the amount of cash banks must set aside in an attempt to stem the deepening slowdown in the world’s second biggest economy.