Sterling sees dip in currency exchange

Sterling currency exchange rate has fallen due to concerns about the economic recovery.

The pound fell against the dollar today (August 20th) despite a boost from stronger than expected retail sales yesterday.

Paul Robson, a currency strategist at RBS, told Reuters: "If the worries that the US economy will fall over and concerns about a global slowdown gather ground, it will be pretty negative for the UK and the pound.

"Also, the overnight price action suggests that the environment towards risk is pretty negative and sterling will face some pressure because of that."

Investors are beginning to seek refuge in safe-haven currencies, such as the Swiss franc, due to "growing worries about a stuttering global economy", the news source reported.

At 11:45 BST the pound bought $1.54. However, sterling did not perform as badly against the euro, with a slight increase in trade to €1.21.

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Posted by Sarah Pitton