Tuesday, June 12, 2007

U.K. Pound Advances on View Further Rate Increases May Spur Carry Trade

(Bloomberg) -- The pound rose versus the dollar after
Bank of England Governor Mervyn King signaled he may raise
interest rates again, prompting speculation the currency will
continue to benefit from so-called carry trades.

The U.K. currency climbed for the first day in five, rallying
from its lowest in two months, after King said late yesterday the
BOE ``may need to take further action'' to contain inflation. The
bank has raised rates four times since August to a six-year high,
improving the allure of U.K. assets.


Read more at Bloomberg Currencies News

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