Australian dollar makes substantial gains against sterling

The Australian dollar appreciated heavily against sterling on Friday, after data showed the UK economy’s fall in the first quarter was its fastest in 30 years. Britain’s first quarter gross domestic product fell 4.1% year on year, the biggest annual drop since 1979. The latest figures mean that GDP has now shrunk for three quarters in a row, and confirm that the economy is still deep in recession. Sterling also came under pressure after The Telegraph newspaper reported that ratings agencies were concerned about Britain’s rising debt levels. Earlier last week, the government said that the national debt would reach 1.4 trillion pounds during the next five years.