Sterling climbs against dollar

Group Business Editor

Saturday 21 April 2012

STERLING climbed further against the dollar yesterday, hitting $1.6144 as strong UK retail sales figures helped it extend its gains.

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ian mcconnell business ediitor

The pound, which is trading around its best levels against the dollar since last autumn, hit a fresh 20-month high against a basket of currencies as news of a 1.8% month-on-month surge in retail sales volumes in March provided a boost.

Sterling's strength is good news for UK holiday-makers travelling overseas. However, at the margin, it may crimp UK companies' competitiveness in export markets.The pound was put on an upward path by the revelation on Wednesday that Bank of England Monetary Policy Committee member Adam Posen had abandoned his campaign for an immediate further increase in quantitative easing from £325 billion to £350bn.Sterling eased slightly from its intra-day peak to close in London last night at $1.6123 – up 0.65 cents on its Thursday finish of $1.6058 and nearly three cents higher than its $1.5850 close on Friday last week. The pound dipped against the euro yesterday, but is within sight of 20-month highs hit earlier this week. The euro finished last night in London at 81.93p, up from a close of 81.79p on Thursday but down from 82.53p on Friday last week.Mr Posen's change of stance, revealed with publication of minutes of the nine-strong MPC's April 4 and 5 meeting, left David Miles voting in isolation for a rise in QE, which is aimed at stimulating the economy by boosting money supply through bond purchases.

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Sterling climbs against dollar

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