Currency exchange rate 'steadying for sterling'

Sterling's currency exchange rate has levelled off following its gains last week.

Chancellor George Osborne's emergency Budget announcement on June 22nd saw the pound's currency exchange rate increase as investors' confidence in the UK economy was restored due to Mr Osborne's tough stance on the recovery.

However, things appear to have changed this week as the pound slipped against the two major currencies.

Against the euro, sterling was trading at �1.216 at 09:30 BST, still hovering close to the year's high of �1.217.

While the pound fell against the dollar to trade at $1.50 this morning.

Adam Cole, global head of currency strategy at RBC, told Reuters: "Euro/sterling seems to have lost momentum and it's likely to settle in range.

"There's concern that the market reaction to the Budget was more optimistic than it should have been."

Other analysts expressed concern that the tough Budget announcement would hold back the UK's economic recovery, which could in turn continue to weigh down on sterling.

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Posted by Eleanor Ward