Pound falls to 12-year low against the Australian dollar

Sterling dropped to a 12-year low against the Australian dollar this afternoon, as the release of worse-than-expected GDP figures in the UK undermined the pound. Gross Domestic Product data released this morning showed the British economy contracted by 1.9% in the first quarter, compared to a projected contraction of 1.5%.

The Australian dollar was also helped by rising equity markets, while the pound has been weighed down by a newspaper article highlighting risks to Britain's sovereign credit rating.