Monday, April 16, 2007

Pound Leaps to Highest Since September 1992 as House, Factory Prices Surge

(Bloomberg) -- The pound leapt to the highest in 15 years against the dollar as U.K. reports showing faster inflation prompted traders to add to wagers that the Bank of England will raise interest rates twice more this year.

The currency rose for a fifth straight day after reports showed gains in housing costs accelerated and factory-gate prices increased the most in 11 months. The prospect of higher rates prompted investors to buy U.K. assets using funds borrowed in lower-yielding currencies such as the yen, which sank to the weakest in more than two months against the pound.


Read more at Bloomberg Currencies News

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