Pound drops below $1.30 after a surprise fall in retail sales in June

 

The pound has fallen under $1.30 after a surprise fall in retail sales in June, confounding expectations of an increase.

 

 

The Office for National Statistics said sales fell by 0.5% last month compared with May - below forecasts of a 0.2% rise.


While the World Cup and hot weather helped food and drink sales, they also kept shoppers away from high streets.


The weak figures cast doubt on whether interest rates will rise next month.


Sterling is down almost 0.7% at $1.2980 against the dollar - the lowest since September last year.

 

The Bank of England had been expected to raise interest rates in August. But following the inflation figures released earlier this week, economists were divided on whether it would do so.


Tom Stevens at Fidelity International, said: "An August rate hike is in the balance. Whether or not one is delivered, the trajectory thereafter will be extremely shallow."




BBC      News.