Sterling exchange at four-week high

Sterling reached its highest trading figures against the dollar in nearly four weeks, trading at a high of $1.63 dollars to the pound at midday today (January 13th).

The pound has also performed well against the euro with a high of one pound buying almost €1.123.

Higher than expected UK industry figures from the Office for National Statistics are suspected to account for the positive performance.

Comments from the Bank of England suggesting intentions to hold off from further stimulus have also boosted faith in the currency.

However, Phyllis Papadavid, currency strategist at Societe Generale, told Reuters that the up-turn would not be long-lived until policy regarding stimulus was certain.

She said: "Any near-term upside in sterling will be limited until the larger questions about the Bank of England's monetary policy and the uncertainty over fiscal stimulus are cleared up."

The pound dipped against the dollar at the beginning of 2010 but has been making a steady climb as more figures supporting the UK's gradual return to growth have been released.