Pound hits seven month high against dollar

The rise is due to investors spurning the US dollar in favour of the pound and commodity-related currencies such as the Australian dollar, according to Caxton FX, one of Europe's leading foreign exchange companies. Gaining 9.5% in May, the pound made the largest gain in a month since 1985 and most of the rise has been achieved in the past two weeks. It has climbed 8.3% from its closing price of £1.5177 on May 15. Touching $1.64 this morning, the pound is up from $1.61 on Friday to reach its peak since October. The Bank of England and European Central Bank hold their monthly interest ...