sterling

The managers of the Ruffer investment company have defended their portfolio's exposure to the US dollar, saying it will protect them against a trio of political events which could knock back sterling.

Housebuilder stocks have fallen and the pound is nearing 1.70 against the dollar as investors react to Mark Carney's change of tack on interest rates and new measures that may curb mortgage borrowing.

Stock markets have jumped this afternoon following a series of drastic measures from the European Central Bank to stave off a downturn and boost inflation.

Sterling has fallen back below $1.69 after worse-than-expected borrowing figures disappointed those investors hoping for further confirmation the economy is back on track.

Sterling has spiked further against the dollar and other currencies after strong retail sales and minutes of the latest Monetary Policy Committee meeting stirred up the rate hike debate.

An independent Scotland would face a "capital flight" if it did not retain the pound, according to analysts at Deutsche Bank.

Sterling has risen above $1.69 against the US dollar during trading, nearing its highest level for five years following the release of strong manufacturing data for April.

Sterling has climbed to a four-year high against the dollar after the UK's jobless rate, one of the triggers for an interest rate rise, was breached.

Andrew Cole, investment director at Barings, has warned sterling "could get ugly" during the next six months, ahead of the 2015 general election, but said it remains the best of a bad bunch for now.

Weaker US data and ongoing expectations of tighter UK monetary policy have helped boost gold and sterling respectively as the dollar loses ground.