Friday, July 13, 2007

U.K. Pound Heads for Fifth Weekly Gain Versus Dollar on Interest Rate View

(Bloomberg) -- The pound is poised for its longest
winning streak versus the dollar in more than a year on
speculation the Bank of England will keep raising interest rates
while the Federal Reserve stays on hold.

The U.K. currency is set for a fifth week of gains 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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