Sterling suffers low on poor retail news

Sterling had another bad day on Tuesday, hitting a one-month low in relation to the US dollar on a poor April retails sales report.

Even though at least part of the poor retail performance in April could be blamed on an early Easter holiday this year, the report still sent sterling down 0.5 percent to $1.8763 against the dollar at one point before it recovered slightly to $1.8817.

Sterling also fell 0.3 percent in relation to the euro, to £0.6835. It was also down 0.3 percent to ¥198.66 against the yen, as well as being down 0.4 percent to A$2.4269 in relation to the Australian dollar.

Other major currencies saw little change.

The New Zealand dollar fell 0.6 percent in relation to the US dollar, to $0.7257 after a report that foot and mouth disease had been released on purpose on a small island near Auckland.

The kiwi later recovered to $0.7309 amid speculation that the report was a hoax, considering that similar reports in the past have turned out to be false.

If it was a hoax, it was a dangerous one: if the report had been true, it would have devastated the New Zealand economy because it would have halted exports of dairy products, meat, wool and hides, which comprise almost a third of New Zealand’s annual exports.

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