British Pound Jumps Near Six-Year High Against Dollar
The British pound spiked near a six-year high against the dollar on Tuesday after a surprisingly big increase in inflation fueled expectations that the Bank of England may start raising interest rates soon, possibly by the end of the year.
Figures from the Office for National Statistics released on Tuesday showed consumer prices rose by an annual rate of 1.9 percent in June, just below the bank’s ostensible target of 2 percent. Inflation, up from May’s 1.5 percent, is now at its highest level since January. The forecast-busting figures gave the British pound a further lift to $1.7192 at one stage, its highest level since October 2008. It then settled back to trade 0.4 percent higher on the day at $1.7151.
Source: NYT
