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British Pound reaches 2009 High on Good Data

British Pound reaches 2009 High on Good Data

The UK’s currency has reached its highest level against the US dollar this year – it rose 0.9 per cent to $1.6861 against the dollar.  The pound had already been doing well as investor confidence improved on new data.

According to latest figures, there is an inclination that the economy of the UK may recover from the recession in the third quarter.  This has caused the currency market to react with a far greater risk appetite for investors, even those who have acted very cautiously of late.

At the end of 2008, the Pound was very unpopular amongst money traders but this seems to be a situation heading for healthier times.  Manufacturing purchasing for UK managers showed its highest reading in July according to the index for the sector.  This was the highest reading since April in 2008.

Today’s position for the Pound was the best since October last year.  The currency also rose against the euro – a currency with which it was almost at parity at the end of last year and for the first few months of this year.

Business activity is up too, according to the PMI index – it surpassed 50 to 50.8 in June.  This concurs with the GDP projection which expects an annual growth of 1 per cent for the second half of 2009.

The monetary policy that the government has adopted for the UK to battle the recession is one factor which is cited as being a contributor to the latest data.