Newspaper article The Journal (Newcastle, England)

Sterling Rise AFTERTRUMP Adviser's Euro Comment; FTSE 100

Newspaper article The Journal (Newcastle, England)

Sterling Rise AFTERTRUMP Adviser's Euro Comment; FTSE 100

Article excerpt

Byline: KALYEENA MAKORTOFF

STERLING made gains against the dollar yesterday after Donald Trump's trade adviser struck out at Germany, saying the country was undervaluing the euro to exploit the EU and US.

The pound rose around 0.7% against the greenback to 1.256 in afternoon trading, as investors fled from the US dollar amid economic and political uncertainty.

Germany has a trade surplus with the US and the bulk of the eurozone, and a weak euro means German ex ports are cheaper to overseas buyers. The comments caused investors to shy away from riskier assets such as stocks, helping push the FTSE 100 down 19.33 points to 7099.15.

However, strong eurozone data - including inflation, which rose to its highest level since early 2013 - sent the euro higher. Sterling fell 0.1% against the euro to 1.166.

In oil markets, Brent crude rose 1.5% to $56.13 per barrel (PS44.64), as the drop in the greenback made the dollar-denominated commodity cheaper for overseas investors. …

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