Pound creeps higher as US dollar drops

Market report Hannah Burley

Sterling made gains, rising 0.5 per cent against the dipping US dollar to its highest level in a week and a half at $1.286.

The dollar was knocked after President Donald Trump took a swipe at the US Federal Reserve, expressing disapproval over the tightening of monetary policy with the central bank having continued to raise interest rates.

Against the euro, the pound climbed around 0.3 per cent to €1.116.

It comes after Office for National Statistics data showed public sector net borrowing, excluding state-owned banks, was in surplus by £2 billion in July, above predictions of £1.1bn.

Fiona Cincotta, senior market analyst at City Index, said: “Total tax receipts are up an impressive 4.5 per cent, indicating that the improvement in public sector finances could be thanks to permanent factors rather than temporary ones. This is some welcomed good news for the Chancellor before the Autumn Budget.”

The FTSE 100 ended the day lower, down 0.3 per cent at 7,565.7 points.

In UK stocks, BHP Billiton shares tumbled 2.1 per cent to 1,610.6p after reporting a 37 per cent drop in full-year net profit, following a multibillion pound hit from an impairment charge.

Shares in Game Digital surged 12.2 per cent to 30.9p, despite the company saying that profit would come under pressure after being hit by its second-hand video games business. The biggest risers on the FTSE 100 included Kingfisher,up 6.7p to 276.9p, and Sage Group up 10p at 629.2p. The biggest fallers included British American Tobacco, down 100p to 4,122.5p, and Imperial Brands, down 63p at 2,923.5p.