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Sterling

Are Libor spreads near the new normal?

A decline in interbank spreads shows confidence is returning. But, the margins at which spreads settle are likely to reveal much about how the crisis has changed the face of finance for years to come, Claire Jones, the editor of CentralBanking.com, says.

Interbank rates edge down again

Money market tensions eased further on Friday, signalling that the joint action announced by five of the most powerful central banks last week is having some impact in narrowing spreads between interbank and central banks' benchmark rates.

The only way is down

Avinash Persaud, the chairman of Intelligence Capital, a financial advisory firm, predicts the dollar will drop to $1.70 against the euro and $2.20 against sterling before central banks intervene.

Dollar hits new low on back of Chinese comments

Sterling and the euro reached record highs against the dollar on Wednesday after a senior Chinese official said the government should diversify its foreign exchange reserves by swapping dollars for stronger currencies.

Canadian dollar begins to slide

The Canadian dollar fell on Thursday from an all-time high as worries grew over the effect of the US subprime mortgage crisis on corporate profits and stocks slumped. Analysts said that the market was "definitely overextended".

Currency diversification by Central Bank of Russia

The Central Bank of Russia has added the Swiss franc to the currency composition of its foreign exchange reserves and is considering other plans to diversify their structure, Alexei Ulyukayev, its first deputy chairman, has said.

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