This post was originally published on this site
The British pound advanced on Thursday, with the gains for the U.K. currency proving a drag for the shares of British exporters.
The pound GBPUSD, +0.21% traded at $1.2652 vs. Wednesday’s close of $1.2611.
The U.K. discussion continued to be on the £30 billion spending plan unveiled by Chancellor of the Exchequer Rishi Sunak.
“Importantly, [Wednesday’s] statement marked an important turning point; with the Treasury moving away from looking to keep people attached to their current employer, and turning attention towards helping people get back into employment,” said Michael Brown, senior market analyst at Caxton.
The pound’s strength had the opposite impact on the FTSE 100 UKX, -0.64%, which slumped 0.6%, the worst of the major regional markets in Europe.
Troubled engine maker Rolls-Royce RR, -8.47% slumped 8%, as the company took a $1.45 billion hit for closing currency hedges early, citing the deterioration in the medium-term outlook caused by COVID-19. Rolls-Royce says that it may announce noncash accounting adjustments when its first-half results are announced.
Shares of U.K. home builder Persimmon PSN, +6.00% rose 6% after it said net reservations rose 30% year-over-year in the final six weeks to June 30.
