Dollar holds ground following World Bank growth cut

<p>The dollar has held its ground after the World Bank slashed its global growth forecast.</p>

The dollar has held its ground in forex trading with the pound and euro this morning (January 16th) after the World Bank published fresh figures showing it has downgraded its global growth forecast for 2013.

In its twice-yearly Global Economic Prospects report, the Washington DC-headquartered lender said it anticipated expansion would be 2.4 per cent over the coming 12 months, which is lower than the three per cent figure projected in June 2012.

"[The] recovery we anticipated in June [is] being pushed a little further back in time, beginning closer to the end of the first quarter and into the second quarter of 2013," it stated.

A slower-than-anticipated recovery in developed nations has been blamed for this downward revision, while the bank also warned that confidence in the US is being damaged as policymakers battle over their budget negotiations.

At 08:50 GMT, the dollar rose by 0.3 per cent in trading with the pound to $1 buying £0.624, while it appreciated versus the euro to €0.753.

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