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Tunnel vision

Sterling and UK economy tell different stories

Swaha Pattanaik 

Swaha Pattanaik Sterling's fortunes and those of the British economy have little to do with each other these days. Blame currency traders' near-obsessional focus on Britain's referendum on whether to stay in the European Union (EU). Speculation that voters might be more inclined to remain has seen the pound claw back ground in the past few weeks. A trade-weighted measure of its value has risen four per cent since April 7, when it hit its lowest in more than two and a half years. This is exactly the opposite of what should have happened if economics mattered a jot right now. British growth ...

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First Published: Wed, April 27 2016. 21:31 IST