Economic news

Pound wobbles near 14-month trough, shrugging off solid retail data

The pound hovered near 14-month trough on Thursday, and impressive UK retail failed to underpin the currency hit by concerns over Britain departing from the European Union.

Photo: Reuters

The British currency was unchanged versus the dollar around the $1.27 level. It was also stable at 89.47 pence per euro.

UK retail sales picked up 0.7 percent in July, following a 0.5 percent decline in June. Hot weather and the World Cup were the main factors, which supported consumer spending.

A broadly stronger greenback and extended worries that Britain will fail to reach a deal before it quits the EU in March have hit sterling. It has lost 12 percent of its value since April and on Tuesday dipped to $1.2662, its lowest level since June 2017.

Further Bank of England's interest rate hikes now seem a distant prospect and Brexit continues to provide uncertainty, hitting confidence in the economy.

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