The British pound climbed against the dollar today to a level not seen since June 1981, nudging past $2.02 before closing at $2.0136. The third consecutive trading session with a 26-year high came as the UK braced for a interest rate hike and the US braced for an extended stay by the $2 pound.
Analysts had trouble accounting for the skid, which one expert called an "absolute beating," the Telegraph reports. Now that the psychological barrier is breached, one economist told Reuters, $2.07 isn't out of the question. Meanwhile, the euro flirted with a record high against the battered American currency as the European Central Bank prepared for tomorrow's meeting on interest rates.