Exchange Rates Outlook for the Pound Sterling (GBP), Danish Krone (DKK), Rupee (INR), Rand (ZAR), Swedish Krona (SEK), Norwegian Krone (NOK) - The British Pound Sterling (GBP) had a mixed day of trading, seeing extremes of gains against the Euro (EUR) as a result of a European Central Bank (ECB) interest rate cut to 0.05% which saw a wholesale devaluation of the single currency. This was juxtaposed to the continued loss of value against the other actively traded currency pairs of the US Dollar (USD), Australian Dollar (AUD), and New Zealand Dollar (NZD) which made very significant gains against Sterling as a result of continued Scottish secession fears.
At 18:30am (UK Time) Sterling (GBP) values were 1.2621 (+0.85%) versus the Euro (EUR), at 1.6353 (-0.54%) versus the US Dollar (USD), at 1.5230 (+0.81%) versus the Swiss Franc (CHF) at 1.7779 (-0.81%) versus the Canadian Dollar (CAD), at 1.7481 (-0.81%) versus the Australian Dollar (AUD), at 1.9688 (-0.46%) versus the New Zealand Dollar (NZD), at 98.8100 (-0.56%) versus the Indian Rupee (INR), at 17.8170 (-0.45%) versus South African Rand (ZAR), at 172.06 (-0.33%) versus the Japanese Yen (JPY), at 9.3970 (+0.82%) versus the Danish Krone, at 11.5492 (+0.19%) versus the Swedish Krona and at 10.2375 (+0.01%) versus the Norwegian Krone.
Pound to Danish Krone Exchange Rate Outlook
The Danish Kroner (DKK) suffered heavily on the day versus the Pound due to fears of Euro-zone contamination. Whilst the Kroner will not be directly impacted by the ECB rate cut the negative connotations for the Euro-zone dependent country have become very apparent. To aggravate the problems for DKK the Ukrainian crisis appears to be intensifying with Russian incursions into the Ukraine becoming more brazen.
Pound to Swedish Krona Forecast
The Swedish Krona (SEK) dropped a modest amount of value versus Sterling.
The principle cause for the movement is almost exactly as outlined for the Danish Kroner, however the Swedish Kroner is somewhat more isolated due to its more diversified economic base and having less reliance purely on the Euro-zone economies.
GBP/NOK
The Norwegian Kroner (NOK) remained flat versus the Pound, with its oil driven economy insulated from the economic fallout from the Ukrainian unrest there was little to drive investors out of the currency and conversely with the Pound possibly due to suffer in the Scottish vote for independence there was little to bolster the Pound versus NOK.
GBP/ZAR
The South African Rand (ZAR) lost value against Sterling with the rainbow nation suffering from continued political strife and risk aversion amongst investors at this time of heightened uncertainty. The Rand is likely to remain unattractive to the investment community until a degree of certainty with regard to central banking policy and a resolution to the turmoil in the Ukraine starts to appear.