Sterling soars against US dollar

Press Association
Blue plastic money box in the shape of the UK pound sterling symbol, with the Union Jack flag on the front. Studio shot against
Blue plastic money box in the shape of the UK pound sterling symbol, with the Union Jack flag on the front. Studio shot against

%VIRTUAL-SkimlinksPromo%The pound set another four-year high against the US dollar today, cheering holidaymakers and shoppers but posing a problem for attempts to re-balance growth with a focus on manufacturing and exports.

Sterling's recent strength has contributed to low inflation as it means imports are relatively cheaper in shops, while it also means UK tourists can get more for their money when travelling abroad.