Sterling rose against the dollar on Thursday on a wave of dollar selling that pushed it to historic lows against many currencies on the view the Federal Reserve's recent actions to ease market strains won't work. But the pound remained anchored near all-time lows against the euro which, along with the yen and Swiss franc, emerged as the biggest gainer against the dollar.
The greenback sank to new lows against the euro, Swiss franc and a basket of currencies, and fell below 100 yen for the first time in 12 years amid the deepening gloom surrounding the health of the financial system and US economy. With attention very much on the dollar's slide, sterling played a secondary role in currency trading activity, with dealers completely shrugging off the first budget from UK finance minister Alistair Darling on Wednesday. At 1615 GMT the pound was up 0.2 percent on the day at $2.0310, having traded as high as $2.0391 earlier on Thursday, while the euro was flat at 76.70 pence.
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