Pound's strong run continues
Widespread expectations of more interest rate hikes helped push the pound to a 26-year high against the dollar this morning.The pound rose to 2.0196 against the dollar in early morning trading, continuing a six-day run of advances.Sterling's strength will be welcomed by British tourists heading across the Atlantic, but is not so good news for the manufacturing sector whose important export markets will be hit as a result.Analysts say the cast-iron certainty of a quarter-point interest rate rise in the next decision from the Bank of England, due on Thursday, is driving investor speculation.The pound's recent record highs follow 12 months of strong advances from the currency. It moved forward from around 1.85 last September to 1.975 in December, before falling back to around 1.925 in early March.Since then it has risen to the psychologically important $2 mark, first breaking through the barrier on April 17th. Having slipped to 1.97 three weeks ago it has advanced steadily, hovering briefly below $2 before continuing its steep increase in the last week.Having reached its highest level against the dollar for a quarter of a century, it fell back to 2.016 by 08:00 BST.
Share this..
Related stories
Could UK base rates remain unchanged until 2012?
As the threat of inflation begins to recede, with evidence that factory prices are turning downwards, many people are now looking towards UK base rates and the next increase. A number of economists believe that there is no chance of the base rate rise within 2010 and indeed a number are now looking towards 2012 and beyond before UK base rates will increase. So could UK base rates remain unchanged...
Read MoreCadbury takeover turns nasty
This weekend has seen a stinging attack on Cadbury directors by the chairman and chief executive of Kraft Foods, Irene Rosenfeld. In a move which is almost certainly premeditated, she has accused the Cadbury board of directors of "not doing the maths" amid signs that this potential takeover is becoming more and more acrimonious. The fact that Cadbury directors appear more interested in keeping the...
Read MoreNpower to cut 1,400 UK jobs
28/11/2013 Energy giant Npower which employs 9,600 workers in the UK is to cut 1,400 UK jobs, with a number of these being outsourced to India. The cuts are expected to be in relation to site closures at Peterlee in Durham, Thornaby in North Yorkshire, and Stoke-on-Trent in Staffordshire, however it’s expected that Npower will confirm exact details later on. Npower stated that the reason...
Read MoreUK Retail Sales Slowed Further In July
News that the value of retail sales in the UK rose by just 1.7% in July, compared to the same period last year, shows how difficult the high street is proving for traders. This is the third lowest rise since the spring of 2006 and shows that the UK seems to be heading for a slow drawn out recession.
The figure for July is down on June, which was 2.1%, and well down on...
It is sensible to downsize the UK banking sector?
If you listen to the UK government and the UK regulators it appears as though they are determined to "downsize" the UK banking sector and take away much of the progression achieved over last few years. However, it is worth remembering that the UK financial sector is the central focus of the UK economy and London itself is one of the major financial markets of the world. Any significant changes to...
Read More