(Bloomberg) -- The pound headed for its longest
rally versus the dollar in more than a year after a report showed
U.K. economic growth unexpectedly quickened in the second
quarter, stoking expectations of higher interest rates.
The U.K. currency rose to a 26-year high this week 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
rally versus the dollar in more than a year after a report showed
U.K. economic growth unexpectedly quickened in the second
quarter, stoking expectations of higher interest rates.
The U.K. currency rose to a 26-year high this week 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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