The pound could break the two-dollar barrier in coming months as investors bet that this week’s shock interest rate rise may only be the first of many, analysts said last night.
Sterling hit a 15-month high against the dollar in trading yesterday, rising more than two cents to $1.9105.
UK futures markets are predicting that the Bank of England will lift rates to 5% by December.
References: Daily Telegraph 05/08/06 page 27
