Sterling exchange rate rise

Sterling exchange rates looked strong against the dollar as the pound bought at $1.602 at 11:00 GMT.

After rates neared a two-month low earlier this week, traders saw sterling make a small rise against the dollar, although the currency did make further losses against the euro.

A trader told Reuters that the slow in the dollar is likely to a break in trading for Christmas.

The trader said: "Most market players have finished their pre-Christmas trading yesterday and dollar repatriation has run its course.

"So we're seeing some buying back of the euro and sterling against the dollar."

Despite the increase, Adam Cole, global head of FX strategy at RBC Capital Markets, told Reuters that "sentiment towards sterling is still overwhelmingly negative".

This has been attributed in part to the publication of the MPC's minutes which did not issue any reassurance on the possibility of further quantitative easing in 2010.

UK markets cease trading for the day on the 25th of December.

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Posted by Sarah Pitton