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Pound Soars Against Dollar

Sterling passes $2.02, raising hopes and filling coffers

By Sophie Goldstein,  Newser User

Posted Jul 4, 2007 1:24 PM CDT
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(Newser) – 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.

A US Dollar exchange rate of over two dollars for a Pound is seen displayed on a currency exchange rates indicator at a Bureau de Change in London, Wednesday, April 18, 2007. The U.S. dollar neared an all-time low against the euro and fell further against the British pound...
A US Dollar exchange rate of over two dollars for a Pound is seen displayed on a currency exchange rates indicator at a Bureau de Change in London, Wednesday, April 18, 2007. The U.S. dollar neared an...   (Associated Press)
In this photo illustration, a British pound coin rest upon two US$1 bills, in London in this April 17, 2007 file photo. The decline of the U.S. dollar, which has drawn attention in recent weeks as the currency neared a record low against the euro and a 26-year-low against...
In this photo illustration, a British pound coin rest upon two US$1 bills, in London in this April 17, 2007 file photo. The decline of the U.S. dollar, which has drawn attention in recent weeks as the...   (Associated Press)
A man looks at a currency exchange rates indicator, where the US Dollar exchange rate of over two dollars for a Pound is being displayed, at a Bureau de Change in London, Wednesday, April 18, 2007. The U.S. dollar neared an all-time low against the euro and fell further...
A man looks at a currency exchange rates indicator, where the US Dollar exchange rate of over two dollars for a Pound is being displayed, at a Bureau de Change in London, Wednesday, April 18, 2007. The...   (Associated Press)
A display screen shows the value of the British pound to U.S. dollar, London, Monday June 25, 2007. The British pound briefly topped the US$2 mark before falling back to US$1.9999, up from US$1.9994 on Friday. (AP Photo/Tom Hevezi)
A display screen shows the value of the British pound to U.S. dollar, London, Monday June 25, 2007. The British pound briefly topped the US$2 mark before falling back to US$1.9999, up from US$1.9994...   (Associated Press)
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Related links

A look ahead to tomorrow's Bank of England interest rate meeting
Reuters

More on the economic reports driving the pound
Financial Times (UK)

More on the dollar's continuing weakness against the euro
Bloomberg

 
currency • exchange rate • money • trade • interest • US economy • pound • euro • US dollar

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