Nov 19 Reuters The pound dropped to multiweek lows versus the yen and the Swiss Franc as investors rushed into safehaven assets, after a warning from Russia over its updated nuclear doctrine.
It fell versus the dollar after briefly breaking a 6day falling streak the day before.
President Vladimir Putin issued a warning to the United States on Tuesday, lowering the threshold for a nuclear strike just days after the administration of Joe Biden reportedly allowed Ukraine to fire American missiles deep into Russia.
Investors bought into safehaven currencies after Putin39;s warning, with analysts arguing markets had been too complacent about geopolitical risks.
They perceive sterling as a risky currency, while the socalled safehaven assets are seen as stable and reliable stores of value when markets are experiencing instability.
The pound dropped 0.9 versus yen to 193.49, its lowest level since Oct. 8; it fell 0.4 against the Swiss Franc to 1.1140, its lowest since Nov. 1.
It was down 0.4 versus the greenback at 1.2628.
Barring geopolitical turmoil, several analysts expect the pound to strengthen against the euro as the UK is unlikely to be the focal point for the incoming U.S. administration.
Investors expect the British economy to suffer less from the adverse impact of Trump39;s policies as the Presidentelect said he was ready to impose tariffs on China and the euro area.
Markets await inflation data on Wednesday, which could provide clues about the Bank of…