Sterling drops vs dollar; one-week volatility jumps ahead of U.S. elections

  • 10/28/2020
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* Graphic: World FX rates in 2020 tmsnrt.rs/2egbfVh * Graphic: Trade-weighted sterling since Brexit vote tmsnrt.rs/2hwV9Hv LONDON, Oct 28 (Reuters) - Sterling fell against a strengthening dollar on Wednesday as markets turned risk-averse in light of a resurgence of COVID-19 infections in Europe, which is prompting new lockdown measures and challenging the narrative of a global economic recovery. Italy entered a new lockdown on Sunday and France is expected to introduce new restrictions on activity. A draft resolution seen by Reuters showed German Chancellor Angela Merkel wants to close all restaurants and bars from Nov. 4. British Prime Minister Boris Johnson is being put under pressure for a new lockdown with the government working on the assumption the second wave of coronavirus will be more deadly than the first, the Telegraph newspaper reported. Global equities fell for the third consecutive session and London’s FTSE 100 dropped to its lowest level in six months . The dollar rose as investors sought safety. Advertisement

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