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MORNING BELL: Sterling fell to its lowest since May

The U.S. dollar rose on Monday, hitting a 12.5-year peak against the yen after the release of stronger-than-expected data on U.S. manufacturing and construction spending, while renewed worries over a Greek default contributed to the euro's weakness. The euro last traded down 0.54% against the greenback at $1.09310, retreating from Friday's one-week high of $1.1006. The latest data fueled the greenback's rise to 124.920 yen, its highest since December 2002.

Sterling fell to a three-week low against the dollar on Monday, erasing all the gains it had made since last month's national election, after data showed the British manufacturing sector grew at a much slower pace than expected in May. Sterling fell to $1.5198, its lowest since May 7, and down from $1.5270 before the data was released. The euro rose to 71.77 pence from 71.54 before the British PMI survey was released. But, the single currency was weak overall after Greece missed a self-imposed Sunday deadline for reaching an agreement with its lenders to unlock aid, keeping alive fears of a debt default.

Gold was little changed on Monday, giving up gains as the dollar rallied after the precious metal was initially buoyed by an unexpected stall in U.S. consumer spending and comments on interest rates from a Federal Reserve official. Spot gold rose to a session high of $1,204.31 an ounce and was down 0.04% at $1,189.30 an ounce by 15:00. EDT (19:00 GMT). It posted a second consecutive weekly fall last week, hitting a three-week low of $1,180.50 on Thursday.

 

 



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