(Reuters) - Sterling finally hurdled the psychological $2 barrier to hit a 15-year peak against the dollar on Tuesday as UK inflation topped 3 percent, while robust German investor sentiment kept the euro well supported.
The pound unlocked the $2 barrier -- last seen just before Britain exited the pre-euro Exchange Rate Mechanism in 1992 -- as data showed consumer prices had accelerated to 3.1 percent in March, its highest since comparable records began in 1997. This has cemented expectations for a May interest rate hike to 5.5 percent and priced in the possibility of more.
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