Dollar tumbles; Sterling, Euro jump as BoE buys UK bonds

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Dollar tumbles; Sterling, Euro jump as BoE buys UK bonds

On Wednesday, despite having had a strong opening of the day, the US Dollar Index had retreated sharply as sterling alongside the bloc’s common currency euro had sharply clawed back. In matter of the fact, in the day’s large-scale gain in Sterling that mostly pivoted other major and emerging market currencies to counter a strengthening US Dollar, came forth as the Bank of England had repurchased £65 billion worth of Government bonds, allowing some breathing space after having been asphyxiated over recent days while thwarting the greenback’s progress that had witnessed a fresh 22-year-high on Tuesday.

According to Bank of England, the bank had received $2.78 billion worth of offers at its first bond repurchase program installed in a bid to stabilize the market, however, the Central Bank had accepted offers worth of £1.025 billion.

The Central Bank of England had said in a statement that its policymakers had agreed to purchasing as many long-dated government bond notes as required before October 14 aimed at recouping some of British Pound’s grounds that it had lost over recent weeks.

Pound hit an all-time-low of $1.03 against its American counterpart on Monday’s Asian trading hour.

Euro, Sterling claw back, as greenback loses momentum

In the day’s FX market wind-down, British Pound jumped 1.51 per cent to $1.0892, while the bloc’s currency shared among 21 member states climbed 1.5 per cent to $0.9739.

Besides, American Dollar lost 0.61 per cent against its Japanese peer to 143.95 yen per dollar, whole Aussies strengthened 1.41 per cent. The US Dollar Index (DXY) measured against a basket of six major currencies on an average ended the day at 112.66 after spiking to a fresh two-decade high of 114.78.