Currency exchange rate hits 6-month high

Sterling's currency exchange rate against the US dollar reached a six-month high yesterday (August 3rd).

Strong financial data from the UK, including second quarter economic growth of 1.1 per cent, was cited as driving the currency up in value.

The latest manufacturing data also proved to be positive, further reassuring trade.

However, analysts believe that the pound will face difficulties continuing its rise as it struggles to break through the $1.60 barrier.

The pound reached a high of $1.596 during trade yesterday.

Audrey Childe-Freeman, currency strategist at Brown Brothers Harriman, told Reuters: "Sterling has had a really good run recently, but it needs fresh impetus to make a sustainable break above $1.60."

While Lee Hardman, currency economist at the Bank of Tokyo-Mitsubishi UFJ, told the news source that analysts "expect some consolidation" because "trade could become stretched if we see a significant rise above $1.60".

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

Posted by Sarah Pitton