Friday, July 13, 2007

U.K. Pound Gains for Fifth Week Versus Dollar on Outlook for Interest Rate

(Bloomberg) -- The pound posted its longest winning
run against the dollar in more than a year on speculation Bank of
England policy makers will keep raising interest rates while the
U.S. Federal Reserve stays on hold.

The U.K. currency gained for a fifth week as futures traders
bet the central bank will raise rates a quarter-point and start
pricing in a further move to 6.25 percent by year-end. The pound
touched a 26-year high after Moody's Investors Service cut
ratings on bonds backed by U.S. subprime mortgages and Standard &
Poor's threatened to do the same.


Read more at Bloomberg Currencies News

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