Currency exchange rate dip follows retail disappointment

Currency exchange rates for sterling have fallen following the publication of the latest retail figures.

The Office for National Statistics revealed yesterday (September 16th) that there was a 0.5 per cent drop in sales between July and August.

Both value and volumes fell by this amount between the two months.

Concerns about rising taxes and impending cuts to public spending are thought to be holding back consumers.

Thierry Falque-Pierrotin, chief executive of Kesa, the firm which owns Comet, told the BBC: "After a positive first quarter we still anticipate that our markets will remain challenging for the remainder of this financial year."

Despite the monthly decline, annual comparisons revealed that there was a 1.9 per cent growth in terms of value of retail sales compared to August 2009.

However, trade appeared to be improving by this morning with the pound buying $1.57 at 08:00 BST.

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Posted by Thomas Barber