Pound hits 26-year high as dollar plummets

clock

The pound hit its highest level for 26 years earlier today after concerns surrounding the US sub-prime housing market saw the dollar plummet to a 12-year low.

Sterling leapt to $2.05 fuelled by renewed expectations of higher UK interest rates after stronger than expected inflation data emerged yesterday. It has reinforced predictions the Bank of England would increase interest rates to 6% as early as next month, and came as the Bank prepared to release the minutes of the latest meeting held by its rate-setting Monetary Policy Committee. The euro also benefited from renewed weakness in the dollar, rising as high as $1.3823 on EBS, the electronic currency trading platform. Ian Kernohan, economist at RLAM, says he expects the economy to slow but...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

Advisers expecting more of asset managers since Consumer Duty

Advisers expecting more of asset managers since Consumer Duty

‘We actually need to understand one another better’

Hope Coumbe
clock 28 March 2024 • 1 min read
Fears tech limitations could stall MPS on its upward trajectory

Fears tech limitations could stall MPS on its upward trajectory

‘There have been a few changes and challenges around growth in general’

Hope Coumbe
clock 27 March 2024 • 1 min read
Partner Insight: Beyond 60/40

Partner Insight: Beyond 60/40

Invesco
clock 27 March 2024 • 5 min read