British American Tobacco today said it had enjoyed a strong start to 2006, but currency swings meant it would be tough to sustain such a positive performance.

British American Tobacco today said it was heading for a highly satisfactory year after volumes of its top four brands rose 9% in the first nine months of this year.

British American Tobacco and RJ Reynolds Tobacco have agreed to merge their US tobacco businesses, uniting the nation’s second and third largest tobacco companies in an effort to blunt the attacks of sagging sales and cheaper brands.