Currency exchange drop for sterling

Currency exchange markets have witnessed a drop in the value of sterling this morning (June 1st).

According to Reuters, the pound dipped due to a fall in UK equities prompted by the drop in BP share values after the failure to stem the oil leak in US waters.

However, the recent resignation of treasury minister David Laws is thought not to have affected the market.

Following reassurance from prime minister David Cameron, David Frost, director general of the British Chambers of Commerce, told the Financial Times: "The key thing now is just to get on with the Budget preparations.

"Danny Alexander has just three weeks to prove that he's got a grip on public finances and to convince business on tax and spending."

Sterling hovered close to its year's low against the dollar of $1.433. At 10:30 BST £1 bought $1.447.

The pound fared better against the euro, trading at €1.19 this morning.

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Posted by Chris Barber