Sterling fell against the US dollar by late morning, as renewed concerns over the Greek economy encouraged investors to reduce their exposure to risky currencies.

Domestic economic data released today provided a mixed overview of the UK economy, with retail sales rising slightly below expectations at 0.4% in March. The latest figure follows a 2.1% increase in February, and equates to a seasonally adjusted year-on-year improvement of 2.2% in March. Meanwhile, a separate report showed UK government borrowing at its worst level in British history at £163.4 billion in March. This was marginally better than the government’s projection of £166.5 billion. Elsewhere, the Confederation of British Industry (CBI) today said its total order book balance improved slightly this month to -36 from -37 in March and export order book balance rose to -16 from -18, the highest since August 2008. ‘Manufacturing appears to be on an upward trend,’ said CBI chief economic adviser Ian McCafferty. ‘The appetite for UK-made goods overseas is growing strongly, thanks to the relative weakness of sterling and the gradual recovery of the global economy. With demand expected to strengthen further and stocks running low, UK firms are planning to step up production in the next quarter.