Currency exchange rate high for sterling

Sterling's currency exchange rate rose to a two-and-a-half-month high against the dollar yesterday (July 15th).

The increase followed an announcement from the US Federal Reserve, which revised down the forecast growth for the US economy by 0.2 per cent to a range of between three and 3.5 per cent.

Notes released in Washington said: "The changes to the outlook were viewed as relatively modest and as not warranting policy accommodation beyond that already in place."

Sterling rose to trade at $1.54 against the US dollar.

However, the pound's performance against the euro remained flat.

Chris Turner, head of foreign exchange strategy at ING, told Reuters: "This summer has seen an uneasy calm fall over the euro zone story, but one that could shatter relatively easily."

The currency fell this morning to trade at �1.19, maintaining a gradual decline after the peak seen at the end of June.

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Posted by Chris Barber