Currency exchange markets see sterling slip

Sterling has dipped against the dollar on the currency exchange markets, with analysts suggesting that political movement is behind the decline.

The markets saw the pound drop by 0.79 per cent against the dollar this morning (May 4th) to trade at $1.51 at 11:30 BST.

It is thought that the uncertainty of a coalition government is continuing to prey on traders' minds.

Reuters reported that Steve Barrow, currency strategist at Standard Bank, said in a note: "The market has discounted a hung parliament because polls have been suggesting it for months.

"But whether the market has anticipated the difficulty in putting together a workable and durable majority government is another matter."

However, while the pound saw a dip against the dollar, the currency was up against the euro to trade at €1.15 at 11:30 BST.

Currency exchange analysts suspect that concerns over Greece's continuing debt crisis are behind sterling's gains.

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Posted by Thomas Smith