1% currency exchange drop for sterling

Sterling's currency exchange rate has fallen by one per cent against the dollar.

The drop came yesterday (September 28th) as a member of the Bank of England's Monetary Policy Committee said that the Bank of England should start to pump more money in to the UK economy through quantitative easing.

Adam Posen said that this would help the country to avoid copying Japan in the 1990s and prevent it from falling into a further slump.

The pound fell almost immediately against the euro and the US dollar, trading at €1.16 and $1.57.

Andrew Scott from currency exchange specialists HiFX commented: "These are some of the most explicit comments we've had from any member of the Bank's committee in favour of the Central Bank providing additional stimulus.

"This may come as a surprise to some, as the economy is still growing."

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Posted by Eleanor Ward