FX Week

Sterling to survive Hutton Inquiry

The findings, due out next month, are widely expected to cause a short-term weakening of sterling. This adds to a series of drop-offs in sterling during the proceedings, when questionable government practices emerged. On the morning of August 28 when Tony Blair was testifying, sterling/dollar fell to around 1.57.

"Investors are looking at the opinion polls," said Jane Foley, FX strategist at Barclays Capital in London. "And with the opinion of the government falling there is now some potentia