Weak data prompts currency exchange rate fall

The currency exchange rate for the pound has fallen on the back of weak economic data.

Published this morning (September 14th), the Royal Institution of Chartered Surveyors' (RICS) house price index showed a decline in the property market in the UK.

Sterling fell broadly as a result, dropping against the US dollar to buy $1.54 at 09:00 BST.

The currency also slipped against the euro to trade at €1.19.

RICS data overshadowed the publication of more positive data from Nationwide showing that consumer confidence was on the rise.

In a note to Reuters, Steve Barrow, currency analyst at Standard Bank, said: "Of the two surveys, we'd certainly read more into the RICS data than the Nationwide and hence we'd look for a weaker pound and stronger gilts/short sterling as a result."

Furthermore, Michael Derks, chief strategist at FXPro, told the news source that concerns of a fall in house prices in the months ahead are likely to keep the pound weak.

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Posted by Chris Barber