Sterling rally stalls
Sterling exchange rates have continued to decline against its European and Asian currency partners in today's trading, as European stocks fall following concerns over the sustainability of recovery in Japan. The pound is marginally stronger against the Australian and New Zealand dollars, as well as the Brazilian real.
After climbing 23% between March and August, the pound has stalled as optimism over UK recovery prospects falters. In the last two weeks the pound has slumped 2.5% against the US dollar after the Bank of England voted to increase quantitative easing and inflation forecasts remained weak. The euro has extended gains on the back of news that France and Germany emerged from recession.
Retail sales and the consumer price index due tomorrow will likely be a further source of volatility for sterling exchange rates. The pound is currently trading at 1.62 against the US dollar and 1.15 against the euro.
The rates quoted above are interbank rates. Client rates may vary according to the volume and timing of the trade.