Pound Breaks $2.10 Barrier

Dollar hits 26-year low against sterling, new low against euro
By Jason Farago,  Newser Staff
Posted Nov 7, 2007 7:43 AM CST
The pound hit a 26-year high against the dollar this morning.   (Index Open)
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(Newser) – Early trading in London has pushed the dollar to its lowest point against sterling in a quarter-century, with one pound now worth $2.10. The Telegraph writes that the dollar's continued fall was encouraged by an announcement in Beijing that the Chinese treasury will diversify its holdings of foreign exchange reserves, saying, "We will favor stronger currencies over weaker ones."

The pound has not been worth $2.10 since 1981, and economists are predicting that the rate might get even higher despite warnings of a UK economic slowdown. This morning the greenback is down against 14 of the world's 16 biggest currencies, hitting a record low against the euro and a 50-year low against the Canadian dollar.