Managers avoid sterling assets as Scottish referendum nears

clock • 2 min read

Investors are turning to US dollar-denominated assets in anticipation of further sterling weakness as the referendum on Scottish independence nears.

Sterling has steadily strengthened versus the dollar for most of 2014, reaching a five-and-a-half-year peak of $1.72 in early July. Since then, however, it has started to slide, falling 0.6% in the month to 12 August. The currency hit a four-month low under $1.67 last Thursday following a more dovish Bank of England inflation report, but managers said there are a number of other factors driving the recent change in sentiment. Chief among them is the vote on Scotland, while the UK’s recovery also faces challenges. Over the weekend the "yes" campaign, which wants independence from th...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Investment

Partner Content: Is the interest rate descent the time to harvest bonds?

Partner Content: Is the interest rate descent the time to harvest bonds?

Markets expect interest rates to fall this year, offering investors the strongest opportunity for fixed income seen for a long time. Watch this video podcast to learn how best to harvest this exciting opportunity.

Sarka Halas
clock 28 March 2024 • 1 min read
Partner Insight: How effective are impact investments?

Partner Insight: How effective are impact investments?

Impact investing has transformed over the past decade, giving investors the opportunity to pursue both financial returns and social and environmental outcomes.

Sarka Halas
clock 27 March 2024 • 2 min read
Partner Insight: High-yield investors should keep a close eye on the default cycle

Partner Insight: High-yield investors should keep a close eye on the default cycle

As central banks start to think about cutting interest rates, forecasts for a peak in credit default rates are not far behind — and could happen sooner than expected, says Wellington Management’s Alex King.

Sarka Halas
clock 27 March 2024 • 2 min read
Trustpilot