Currency exchange dip for sterling

Sterling's currency exchange rate dipped yesterday (may 20th) following concern over the euro's debt-ridden countries.

Green, Portugal, Spain and Ireland have all experienced significant difficulties with their levels of national debt.

The situation in Greece reached the point where other eurozone countries and the International Monetary Fund were forced to bail the nation out to prevent it from going bankrupt.

Analysts suggested that this prompted concern over the state of the UK's finances.

Valentin Marinov, currency strategist at Societe Generale, told Reuters: "The key driver for sterling is very weak investor sentiment.

"The fall in commodity currencies is really spooking the market."

However, it is hoped that plans to solve the deficit will be set out clearly in chancellor George Osborne's Budget on June 22nd.


Sterling was beginning to recover slightly against the dollar this morning as the currency bought $1.44 at 08:15 BST.

However, the pound was down against the euro. At 08:15 BST it £1 bought €1.14.

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Posted by Eleanor Ward