Summer surge in sterling value weakens again

By UK CreditCards.com

Sterling loses favourThe rallies enjoyed by sterling in June and July are over for the time being, currency experts have warned.

Longer-term declines in the value of the pound will spell bad news for Britons planning to use their credit cards abroad.

A new report from HiFX Global Currency revealed that the pound fell against both the euro and the dollar in August.

This is despite the fact that sterling surged against the two currencies in the early part of last month, hitting a one-month high against the euro and 10-month high against the dollar.

Mark Bodega, director at the currency firm, said: "Throughout the first half of 2009, the currency markets experienced acute volatility as the ongoing global economic crisis deepened.

"Despite some positive news in the UK, such as better than expected retail sales figures and encouraging signs from the manufacturing sector, rising unemployment and worrying statistics about the state of the government's finances continue to put pressure on the pound."

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Published: 14 September 2009