Sterling edges up from seven-week low

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Sterling has recovered from a seven-week low, moving higher against the dollar after it fell on Moody's threat to downgrade a raft of UK banks.

At 12:45, sterling was up 0.2% against the dollar at $1.6152, ticking up from $1.6055, its weakest level since the beginning of April, Reuters reports. The pound was sold off this morning in anticipation of Moody's announcement it may downgrade 14 UK banks in the view regulators will harden their future stance on bailouts. However, following the rating agency's announcement, investors sought to cover their short positions on sterling, pushing the pound up higher. Despite this, the currency faces headwinds and could remain vulnerable on concerns about the banking sector and the coun...

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