Sterling edges back above $1.30 as sellers take a breather

As European stock markets rose , demand for the safe-haven yen ebbed and the growth-linked Australian dollar weathered a cut in the country's credit rating outlook by Standard and Poor's. Sterling was up 0.9 percent against the dollar at $1.3044 , having skidded to a 31-year low of $1.2798 on Wednesday. It is down over 14 percent since the Brexit vote, with some analysts expecting it to drop to $1.20 in coming months as the Bank of England prepares to ease monetary policy. "Sterling momentum has