Currency exchange markets see sterling fall

Sterling has fallen in value on the currency exchange markets.

According to Reuters, while early trade was up yesterday (June 2nd) it dipped later in the day.

The strong start for sterling followed Prudential's withdrawal from a $35.5 billion deal to buy American International Group's Asian life insurance business AIA.

Paul Robson, currency strategist at RBS, told the news source: "Sterling has settled down after being driven by alleged flows from the corporate sector over recent sessions.

"There's been some unwinding of short-term positions related to these expected flows over the course of the day."

The pound was up slightly against the dollar this morning, trading at $1.46 aat 09:45 BST.

However, sterling dipped against the euro to buy €1.195, although it continued to hover around the 52-week high of €1.198.

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Posted by Chris Barber