Wednesday, June 20, 2007

Pound May Extend Gains on Speculation Interest Rates to Rise Next Month

(Bloomberg) -- The pound may climb for a fifth day,
its longest winning run in two months, on speculation investors
will keep increasing bets on higher interest rates in Europe's
second-largest economy.

The U.K. currency has risen 1.2 percent versus the dollar in
the past four days, extending gains yesterday after minutes of
the Bank of England's June policy meeting showed Governor Mervyn
King and three other policy committee members backed higher
borrowing costs. That prompted HSBC Plc and JPMorgan Chase Co. to
bring forward their forecasts of the next interest-rate rise.


Read more at Bloomberg Currencies News

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