Sterling currency exchange rate dips

The currency exchange rate for the pound has fallen following the publication of poor manufacturing data.

Released by Markit and the Chartered Institute of Purchasing and Supply yesterday (September 1st), the PMI for manufacturing was revealed to be 54.3 for August.

This fell below the rate which analysts had predicted, resulting in a decline for the pound due to concerns over the strength of the economic recovery.

However, the rate did remain above 50, which is the point separating growth from contraction in activity.

RBC Capital Markets strategist Christian Lawrence told Reuters: "The market expected some weakness in the data so I'm slightly surprised at the strong reaction."

"We should see some correction, some pullback," he added.

At 08:15 BST this morning sterling was trading against the euro at €1.20 and against the US dollar at $1.54.

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Posted by Eleanor Ward