March 13, 2020 / 10:03 AM / a month ago

Sterling rebounds from 5-month lows in volatile trading

* Graphic: World FX rates in 2020 tmsnrt.rs/2egbfVh

* Graphic: Trade-weighted sterling since Brexit vote tmsnrt.rs/2hwV9Hv

LONDON, March 13 (Reuters) - The British pound rebounded nearly half a percent in volatile trading on Friday after falling to its lowest level in five months in the previous session.

Though European stock markets stabilised on Friday and U.S. stock index futures pointed to a firmer start on Wall Street, investors were staring at billions of dollars in losses as global financial markets faced their worst weekly performance since the 2008 financial crisis.

In early trading on Friday, the British currency rose 0.4% to $1.2625 after falling below $1.25 to its lowest level in five months on Thursday.

The pound has largely tracked the volatile moves in global markets this week with twin stimulus measures from the Bank of England and the British government, including an interest rate cut and billions of pounds of support for struggling firms offering only temporary support.

The pound has come under pressure this week as investors expected the pound to remain vulnerable due to its exposure to its major export markets including the United States and Europe, according to Jeffrey Halley, a senior market analyst at OANDA.

Against the euro, the pound halted its losing streak, gaining by a similar magnitude to 88.58 pence and just below a October 2019 high of 89.38 pence. (Reporting by Saikat Chatterjee; Editing by Angus MacSwan)

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