Sterling slips as dollar strengthens

<p>The sterling has fallen against global rivals today.</p>

A strong week for the US dollar has seen sterling continue to slip back against the greenback and other global rivals today (April 4th).

Sterling is still up by around ten per cent on the US dollar since the middle of last year, but the currency may be heading for a fall.

According to a report by Reuters, the dollar index improved to a five-week high in early trade.

Since the middle of February, the pound has stayed between roughly $1.6480 and $1.6820, although it slipped down 0.1 per cent to $1.6584 on Friday.

Despite this, sterling held firm in comparison to the euro, which it is routinely compared to due to the fact the UK preferred to keep the pound rather than join the single currency.

The future of sterling is also in doubt as Scotland is set to go to the polls to vote on independence later in the year.

First minister Alex Salmond plans to keep the pound if Scotland declares independence, but the Treasury has claimed retaining the single currency would not be possible in the event of a split.

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