Friday, July 20, 2007

Pound Rises to Near 26-Year High Against Dollar After GDP Report, on Rates

(Bloomberg) -- The pound rose to near 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 a sixth weekly gain on
speculation the Bank of England will raise rates half a
percentage point by year-end while the Federal Reserve stays on
hold. The pound advanced this week as the Federal Reserve 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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