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    MORNING BELL: Sterling sank against dollar

    The dollar climbed versus the safe-haven yen on Tuesday as improving investor risk appetite worked against the Japanese currency, which was also under pressure from the prospect of the Bank of Japan eventually easing monetary policy. The dollar fetched 120.42 yen after gaining 0.5% overnight to touch a 1-week high of 120.55. Investor risk appetite improved after last Friday's weak U.S. nonfarm payrolls report was seen cutting the chances of the Federal Reserve hiking interest rates this year.

    Sterling sank against the dollar on Monday after a monthly survey of the services sector crushed any remaining market expectations that the Bank of England is likely to raise interest rates any time soon. The 53.3-point reading on the index of purchasing managers in a sector that dominates British economic output was the lowest since May 2013, and sharply below analysts' forecasts and the previous month's figures. Against the euro, sterling did slightly better, inching up 0.1% on the day, to 73.83 pence per euro.

    Gold was holding just below its highest in a week on Tuesday as investors bet last week's sluggish U.S. nonfarm payrolls data would deter the Federal Reserve from hiking rates this year. Spot gold was little changed, at $1,135.10 an ounce by 0033 GMT. The metal had climbed to a one-week high of $1,141.80 in the previous session, before closing down 0.2 percent on mild profit taking.

     

     


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