(Bloomberg) -- The pound rose to a 26-year high
against the dollar after a report showed U.K. economic growth
unexpectedly quickened in the second quarter, stoking
expectations of higher interest rates.
The U.K. currency headed for its longest rally in more than
a year on speculation the Bank of England will raise rates half a
percentage point from 5.75 percent by year-end while the Federal
Reserve stays on hold. The pound also advanced as the Fed trimmed
its forecast for economic growth and Bear Stearns Cos. reported
losses on hedge funds that bet on bonds backed by subprime loans.
Read more at Bloomberg Currencies News
against the dollar after a report showed U.K. economic growth
unexpectedly quickened in the second quarter, stoking
expectations of higher interest rates.
The U.K. currency headed for its longest rally in more than
a year on speculation the Bank of England will raise rates half a
percentage point from 5.75 percent by year-end while the Federal
Reserve stays on hold. The pound also advanced as the Fed trimmed
its forecast for economic growth and Bear Stearns Cos. reported
losses on hedge funds that bet on bonds backed by subprime loans.
Read more at Bloomberg Currencies News
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