Sterling Maintains Stable Value Against Dollar.

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Sterling was steady against the dollar holding above a 2-1/2 year low touched a day earlier after data added to signs; that a recession may be looming in Britain.

The pound was flat versus the dollar at $1.1829 by 0840 GMT; after recovering slight losses in early trading, with few immediate news catalysts to guide direction. .

Sterling had touched its lowest since March 2020 after the purchasing manager’s index (PMI.) data showed growth in Britain’s private sector slowing to a crawl in August; with factory output falling and the larger services sector ekeing out only a modest expansion.

The figures added to signs that Britain’s economy will shrink. Sterling has been pummelled by worries around Britain’s surging inflation and declining economy; suffering its biggest weekly fall against the greenback since September 2020.

The Bank of England has warned that Britain is likely to slip into a recession at the end of the year; which will last until 2024, as soaring energy bills are set to push inflation above 13% in October.

Reuters.

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