UK Retail Sales Fall

Tuesday, 12 April 2011 12:22

UK retail sales dropped by a record in March, placing more pressure on the Bank of England to raise interest rates from a record low. The pound fell against the dollar and the euro off the back of these numbers.

The pound fell for a second day against the US, sales at stores measured by value fell 1.9 percent from a year earlier, which is the biggest drop since 1995. The pound fell to $1.6231 today it gained 1.7 % over the dollar last week which was the biggest weekly increase since January 14 and reached $1.6428 on March 8, the most since Jan. 19, 2010. The British currency traded 0.2 % weaker at 0.8848 against the euro.

The drop in sales reported by BRC in London compared with a 1.1 % gain in February, adding to signs the recovery may not be sustained. U.K. manufacturing growth unexpectedly stalled in February, a government report showed on April 6.