Pound Rebounds on Yen Rally and Oil Price Calming
The pound sterling has rebounded from its three-week low after a sharp rally in the yen and a calming of oil prices. Sterling climbed 0.1% to $1.35 on Thursday, recovering from the previous day's decline to a three-week low of $1.348.
The yen's surge was attributed to rising bets on Bank of Japan rate hikes, despite concerns about official intervention. This move knocked the U.S. dollar across the board, causing it to fall along with oil prices, which slipped 1% to $95 a barrel.
A selloff in global bond markets that pushed Britain's benchmark 10-year yield to its highest level since 2007 on Wednesday has abated, with the yield down more than 3 basis points. This decline in yields may alleviate some of the pressure on new Prime Minister Andy Burnham's finance minister John Healey as he prepares to present a budget in October.