Sterling sees currency exchange rate drop

The currency exchange rate on the pound has reached a seven-week low against the euro.

Sterling bought �1.17, while against the dollar it dropped from last week's high of $1.54 to trade at close to $1.52.

Concern about the Bank of England interest rate has been putting pressure on the pound.

Andrew Sentance is the only member of the Bank's Monetary Policy Committee to call for the historically-low 0.5 per cent interest rate to be raised.

Meanwhile, the euro has been facing struggles of its own due to Hungary's economic woes.

Although the country is outside of the eurozone it has prompted renewed fear over the state of sovereign debts within the single currency area.

The European Union and the International Monetary Fund (IMF) have told Hungary that it is not doing enough to cut spending.

Earlier this year, the IMF stepped in to help Greece support its sovereign debts.

Click here to see how much you can save with HiFX's Foreign Exchange services

Posted by Chris Barber