Sterling fell broadly on Tuesday, hitting a five-week low against the dollar and its weakest versus the Swiss franc since early 2009 as concerns about the global economic outlook prompted investors to dump higher-risk currencies. The pound fell despite data showing a gain in UK mortgage approvals and consumer credit, breaking below its 200-day moving average and other support levels, which market participants said would put more selling pressure on the UK currency.
By 1620 GMT, sterling had fallen 1.9 percent on the day to 1.5554 francs, its weakest since early January 2009. It fell 1.4 percent versus the yen to 128.85 yen. A fall under 128.71 yen would be its lowest since May. It fell nearly 1 percent against the dollar to $1.5327, its lowest in five weeks. A break under its 200-day moving average at $1.5440 accelerated sterling's losses and pushed it through key support at $1.5373, a low hit earlier this month.
Some traders said a further fall was limited by support at $1.5322, the 38.2 percent Fibonacci retracement of the pound's May-August rally. Sterling also fell against the euro, which rose 1.1 percent to 82.89 pence, its highest in roughly three weeks. Some traders cited speculation of month-end euro/sterling demand from European central banks as pushing the single currency higher. Market participants also said a UK bank was seen picking up the euro versus the pound.