Sterling recovers lost ground as UK public finances show surplus

<p>The pound has recovered some ground as the ONS posts fresh public finances data.</p>

The sterling has managed to make headway in forex trading this morning (February 21st), as official figures revealed UK public finances show a January surplus.

According to the Office for National Statistics (ONS), the country's public finances recorded a surplus of £11.4 billion last month, which is £5 billion higher than in the same month last year.

January often records a surplus thanks to the money coming in from tax self-assessment and corporation tax.

UK public sector net borrowing – excluding financial interventions – was £15.4 billion in the final month of last year, which is up from £14.8 billion in December 2011.

Public sector net borrowing – excluding financial interventions – for the financial year to date is now £93.8 billion.

January's figure was better than the markets had anticipated and included a £3.8 billion cash influx from the Bank of England's asset purchase facility fund.

At 10:10 GMT, the pound made gains of 0.6 per cent in trading with the euro to £1 buying €1.153, while it was flat against the dollar at $1.521.

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