British pound falls, dollar gains

British currency fell to a seven-week low on Friday

NEW YORK: The British pound fell to a seven-week low on Friday after a shock election result cast doubt on Britain’s talks to leave the European Union, but key indices hit fresh record highs before tumbling technology shares drove the Nasdaq and S&P 500 lower. The benchmark FTSE 100 index of large British multinationals fed off sterling’s decline, as earnings from abroad will be worth more from a weaker currency and gained 1%. But some sectors seen as particularly sensitive to Brexit instability saw heavy losses, such as homebuilders and real estate investment trusts, which are seen as a barometer of Brexit sentiment due to their holdings of London office space. After an initial plunge, sterling pared losses against the dollar and euro, while the dollar gained.

Published in The Express Tribune, June 11^th, 2017.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.