Sterling’s Position boosting property market in London

Domestic and international property investors are benefiting from the weak position of Sterling in the currency market, thereby boosting the demand for property and contributing to the growth in property prices.

Bob Munro, senior consultant at currency experts HiFX, said that the dollar’s strength against the pound would continue as hedge funds liquidated assets in emerging markets and kept the money in cash.

He said: “Most of these hedge funds are dollar-denominated and so money is pouring into the dollar.” Munro added: “This is not a vote of confidence in the US economy, more a technical move as people get out of anything risky.

“There is a currency market tsunami washing over everything, and we will have to wait until the waves recede to see what’s left,” he said.