currency

Sterling hit a six-month high against the dollar today as poor US economic data continues to weigh on the currency.

Sterling hit a seven-week low against the euro yesterday as the single currency shrugged off Ireland's ratings downgrade and continued concerns on Hungary.

Investec Asset Management, which runs $5.3bn in active currency funds, has warned the dollar could face a sharp correction this year due to reluctance in the US to embrace fiscal tightening.

Henderson has launched a Ucits III global currency fund for Bob Arends, the head of currency.

China has set the renminbi-dollar exchange rate at its highest level in five years, after announcing it would make its currency more flexible.

THE BIG QUESTION

Investec's Alastair Mundy has warned investors not to be reliant on dollar or sterling ‘safe havens' as the US and UK economies face a tough time reining in their burgeoning deficits.

Richard Buxton has added his name to a growing list of fund manager heavyweights casting doubt on the future of the beleaguered euro.

Investec Asset Management, which runs over $4bn in active currency funds, believes sterling is the cheapest of all major global currencies.

Pictet Funds is rejecting subscriptions of over $1m (£689,000) into its flagship Emerging Local Currency