Currency exchange rate edges down for sterling

The currency exchange rate for sterling has edged down against the euro and the US dollar this morning (September 21st).

Investors expressed concern regarding government bond auctions in eurozone states, which prompted the pound to lose its footing.

Reuters reported that the market was holding out to see what kind of results would be delivered.

A good outcome would ease uncertainties about sovereign debts in countries like Greece and Ireland.

However, a low level of interest in sales would "highlight market worries" and increase pressure on the currencies.

Christian Lawrence, currency analyst at RBC Capital Markets, told the news source: "For the euro/sterling pair, the focus is on the euro. The auctions will be key."

Sterling also dipped against the US dollar this morning.

At 09:30 BST the pound bought $1.55 against the US dollar, while the currency was trading against the euro at €1.18.

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Posted by Sarah Pitton