sterling

HSBC Global Asset Management has added sterling share classes to nine of its offshore emerging market funds, making them more easily accessible to retail investors.

THE BIG QUESTION

LV= Asset Management is launching a hedged share class for its European ex-UK Growth fund, to minimise currency risk for investors.

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.

Betting against sterling has fallen significantly since the emergency Budget, with hedge funds and speculators closing short positions.

Sterling has strengthened against the US dollar and euro on the back of today's emergency Budget, while gilts have also bounced.

UK stocks have tumbled sharply this morning after Fitch labelled Britain's fiscal challenge as "formidable".

Schroders' Andy Brough believes an eventual collapse of the euro would not be the Doomsday event many fear and could be the best scenario for many nations on the Continent.