The value of the pound has dropped against the US dollar after reaching a seven-month high last week.

The pound has fallen in strength against the dollar, dropping sharply from its seven-month high last week.

At 2pm yesterday (8 June), the pound was trading at $1.592 compared with the $1.67 sterling was worth last Wednesday. The seven-month high sterling reached last week gave many people hope about a potential resuscitation of the economy.

Labour’s poor European election results are being held accountable for the pound’s slide against the dollar today.

The drop puts further pressure on Prime Minister Gordon Brown and many analysts predict that a change in PM would not be detrimental for sterling in the long-term.

Falling from its seven-month high last week shows the instability of the pound, causing questions about uncertainty. Traders are less likely to trade in sterling when the pound appears volatile.

One pound is currently worth 1.1471 euros.