Tuesday, 17 July 2007

U.K. Pound Gains Against Dollar for Third Day Before June Inflation Report

(Bloomberg) -- The pound rose for a third day
against the dollar before a report that's forecast to show U.K.
inflation exceeded the Bank of England's 2 percent limit for a
14th month in June.

The pound has risen 1.4 percent this month and touched a 26-
year high on speculation the BOE will keep raising interest rates
while the Federal Reserve stays on hold, increasing the
attraction of sterling-denominated assets. Gilts advanced today,
buoyed by the highest yields of any Group of Seven nation.


Read more at Bloomberg Currencies News

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