Two-week currency exchange low for sterling

The currency exchange rate for sterling has reached a two-week low against the dollar.

In line with the euro, the pound fell further against the US currency today (August 12th).

Weak GDP and employment data from Greece is largely thought to be responsible for the euro's decline.

However, analysts have suggested that the pound is also being held back by the Bank of England's quarterly inflation report, which revised down growth expectations for the UK economy in 2011.

Tom Levinson, currency strategist at ING, told Reuters: "Sterling took something of a breather against the dollar this morning as people were thinking the move had already gone a long way, but it was just a brief pause, and if euro/dollar is trading lower then the risk is that sterling will too."

By 13:15 BST, sterling was trading at $1.55. However, the pound was up against the euro and bought €1.21 at the same time.

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Posted by Eleanor Ward