Pound sterling breaches the $2 mark

04/17/07 - newratings.com

LONDON, April 17 (newratings.com) – The pound sterling Tuesday rose briefly above the $2 mark, for the first time since 1992, before going back to $1.9982 by 1028 hours in London.

The UK statistics office released data on Tuesday showing that the CPI had risen to 3.1% in March, raising hopes of an interest rate hike by the Bank of England. This exerted upward pressure on the pound sterling, taking the currency above the $2 mark. UK interest rates are currently 5.25%, with the Bank of England having already hiked rates by 25 basis points thrice since August 2006. Another rate hike would make UK rates the highest in the eurozone.