The recession is continuing to be a strain on the UK and has effectively weakened sterling exchange rates. The demand for foreign products has declined because of the weaker pound, as a result the UK trade deficit narrowed in May to the smallest in three years. The goods-trade gap was GBP6.3 billion, compared with GBP7.1 billion in April.
Imports fell 4% and exports declined 0.8% in May in support of the pound's 18% slide against the dollar in the past year. The slide is making British exports more competitive and encouraging companies to look away from imports.
The pound's downfall in the past year has its foreign exchange rates at USD1.6211 and EUR1.1592.
The rates quoted above are interbank rates. Client rates may vary according to the volume and timing of the trade.