Sterling and dollar under pressure

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The Independent Online
Sterling and dollar under pressure

The pound and the dollar came under renewed pressure yesterday as investors sought the safe haven of the mark against a background of political instability.

The dollar, weakened by concerns over US exposure to the Mexican crisis, eased further after it was announced that US durable goods orders had risen by 0.6 per cent in January, increasing inflationary fears. The market had expected a fall of 0.5 per cent. It ended down slightly at $1.4698 against the mark.

The pound also slipped against the German currency, closing at DM2.33. Analysts say sterling could hit new lows next week as concerns persist about a possible defeat for the Government over the European Union.