Financial Times FT.com

Sterling slides after retail sales fall

By Peter Garnham

Published: June 18 2009 10:39 | Last updated: June 18 2009 22:11

The pound dropped to a one-week low against the euro and fell sharply against the dollar on Thursday after a surprise fall in UK retail sales raised doubts over the potential for a near-term recovery in the UK economy.

Recent data, including the first rise in industrial production in over a year and figures showing stability in UK house prices, have boosted the pound as investors reasoned that the Bank of England’s aggressive monetary stimulus was feeding through to the real economy.

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