Sterling heading for $2 barrier
The shock rise in UK interest rates last week has sent the pound jumping higher against the dollar and other currencies, a trend that may continue. Sterling rose more than two cents to $1.91 on Friday, a 15-month high.
Analysts think the pound could near the two-dollar mark in coming months as investors pile into the currency.
They expect the Bank of England to raise rates even further from their current 4.75%, presenting a good yield for those buying into the pound.
Sterling has also risen against the euro and the yen, helped by the fact that UK interest rates are higher than those in Japan and the European Union.
Bad for exporters
A high value pound has mixed implications for UK businesses and consumers.
Full source :bbc.co.uk
