Retail data boosts sterling currency exchange rate

Sterling's currency exchange rate increased yesterday (June 17th) following news that the UK's retail industry is improving.

According to the Office for National Statistics, sales in May of this year were 2.2. per cent higher than in the same month in 2009.

Although food stores actually saw a decrease of 0.5 per cent in volume sales, this was compensated for by an increase of 5.4 per cent in sales from predominantly non-food stores.

Sterling's value increased on the currency exchange markets following the news.

Vicky Redwood, economist at Capital Economics, told Reuters: "The figures are still rather stronger than the retail surveys had suggested. And sales in the second quarter overall remain on course to show a strong rise, which in turn should help overall GDP to post a decent expansion."

This morning the currency held on to its gains and was trading against the dollar at $1.48 at 08:15 BST.

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Posted by Sarah Pitton