(Bloomberg) -- The pound rose to its strongest
against the dollar since May 1981 on speculation the appeal of
U.K. assets will increase as the Bank of England keeps raising
interest rates while the Federal Reserve stays on hold.
The U.K. currency extended its six-week rally as the highest
benchmark yields of any Group of Seven nation lured investors
from abroad. U.K. rates will have to rise further, probably next
month, to stabilize inflation which held above the bank's target
for a 14th month in June, Ernst & Young LLP said.
Read more at Bloomberg Currencies News
against the dollar since May 1981 on speculation the appeal of
U.K. assets will increase as the Bank of England keeps raising
interest rates while the Federal Reserve stays on hold.
The U.K. currency extended its six-week rally as the highest
benchmark yields of any Group of Seven nation lured investors
from abroad. U.K. rates will have to rise further, probably next
month, to stabilize inflation which held above the bank's target
for a 14th month in June, Ernst & Young LLP said.
Read more at Bloomberg Currencies News
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