The complexity for Pension and QROPS and investment strategies also needs continued monitoring of exchange rates. Continuing our daily look at factors affecting currencies allows some insight into market conditions affecting exchange rates. Cash and income timing for UK Pensions and QROPS should be considered to maximise the Pension, QROPS and investment income and benefits taken. The dollar hit an month high yesterday against majority of its currency pairs after investors seemed to move away from the current run of risk appetite and return to the safe haven of the Greenback. This was mainly fuelled over the concerns about the debt riddled EU country Greece.
The dollar index which tracks the dollar movement against other currencies rose as high as . the highest level since . Today in the US a report by the Labour Department is expected to show initial jobless applications dropped by , to , . The FED released their policy statement yesterday which revealed they are holding their interest rates at the current level of . , but said signs that the US labour market was beginning to improve was positive and upbeat for the economy. The pound dropped by nearly .
percent to fall to a day low of . the lowest level since April the th, this was not helped after comments made by Bank of England policy maker Timothy Besley who stated that Britain’s economy remains in a fragile state and that inflation should stay under control. The UK’s economy grew in the first quarter at half the pace of the previous three months with some economists believing we will see an upward revision in the next few weeks. Elsewhere the euro continued to be under pressure after it was revealed Greece may need more financial assistance than first estimated.
International Monetary Fund Managing www.milib.co.uk Director Dominique StraussKahn told German lawmakers they made need as much as billion Euros in aid over the next three years, this was against the original figure of billion pledged by the IMF and euro zone. This followed on from Tuesday’s news that Greece’s credit rating had been reduced to ‘junk’ and Portugal’s had been lowered to the third lowest investment grade.