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As the UK economic turmoil continues there is hope today that we may finally have seen the end of the boom and bust economic cycle if UK authorities learn by their recent mistakes. But is this...
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Monday 25th June 2007
The pound briefly edged above the $2 mark this morning, edging close to record exchange highs.
Shortly before 09:00 BST the pound hit a high of 2.006 against the dollar, breaking through the $2 barrier for the first time since May 1st.
It dipped below the marker before rising again for close to half an hour before 10:00 BST, before falling as low as 1.9985.
Today's brief reappearance follows the 26-year-high achieved on April 28th, when the pound briefly traded at an exchange rate of £1 to $2.01.
Experts say last week's minutes from the June Bank of England interest rate decision are helping push the pound upwards against the dollar.
The monetary policy committee (MPC) voted in favour of holding rates at 5.5 per cent, but four of the nine members supported a rise.
With consumer price index (CPI) inflation remaining above the two per cent target at 2.5 per cent in May, the MPC is widely expected to approve a fifth quarter-point hike in 12 months in July's decision.
Such a move would be likely to keep the pound high against the dollar – good news for British tourists heading stateside but bad news for the manufacturing sector, which relies heavily on exports.
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