Sterling steadied against a buoyant dollar on Wednesday amid a wider selloff in global stock markets as data showed factory activity across the world contracting sharply due to the coronavirus pandemic.
Manufacturing gauges tumbled across the globe, with Purchasing Managers' Index (PMI) surveys in Asia, the euro zone and the UK underscoring the widening damage wrought by the pandemic that has infected more than 700,000 people, upended supply chains and led to city lockdowns worldwide.
Data showed output from Britain's manufacturing sector shrank at the fastest pace since the euro zone debt crisis in March as the spread of coronavirus led to spiralling delays and hammered business confidence.
By 14:49 GMT, the pound traded flat to the dollar at $1.2420., reversing losses made earlier in the day. It jumped 1% against a broadly weaker euro to trade at 87.92 pence.
Source : Reuters