Base rate drops help Sterling rally

Commenting on the Pound's recent rally, Stephen Heath, Chief Executive of FairFX.com, said: "There appears to have been a change of sentiment towards the Pound. Sterling is fighting back despite the base rate cuts, and today alone the Pound has strengthened from a low of $1.4365 to over $1.4650. Against the Euro, Sterling has appreciated from €1.12 to over €1.1440.

"The Pound has rallied 8.5 per cent against the Dollar since it bottomed out at $1.35 to £1 in January. There might finally be some good news for holidaymakers planning a trip to the Med, with the Pound gaining over 12 per cent against the Euro since December, when it traded down to an all time low of €1.02 to £1."