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A US pay-per-click marketing agency has complained the current rate of the dollar against sterling leaves UK advertisers with an unfair advantage over their American counterparts.

The pound yesterday rose to a new high of $2.0170 - and concern is growing Stateside.

"When competing against small-to-medium size American advertisers, companies or affiliate marketers, the English have a big advantage in search engine bids," said Pablo Palatnik, managing partner of eTrends Media Group, a PPC firm with offices in Miami, Michigan and Buenos Aires.

"Affiliate marketing is growing and showing much interest in Europe making the affiliate space more competitive in search engine and ad networks with their ability to bid higher due to their valued currency."

The rise in the price of the dollar may be good news for New York City's British tourism trade, but Palatnik said the price of the Euro against the US currency also posed a threat from the continent.

UK-based global advertising agency WPP, reporting first-quarter results in June, said an increase in revenue of 6% was pegged back to just 1% because of the depreciation of the pound against the dollar.

The latest rise in the dollar against the pound came following speculation the Bank Of England is due to increase interest rates on Thursday.

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