Pound jumps more than one and a half cents to hit strongest rate since mid-December
The pound surged to its highest level in five months against the dollar this morning, as optimism grew that the worst of the UK financial crisis might soon be over.
Sterling jumped more than one and a half cents to hit $1.5476 this morning, its strongest point since mid-December.
Currency traders said the dollar - still seen as a safe haven despite America's economic woes - was suffering as investors started to buy shares again in anticipation of an economic recovery. Sterling has suffered badly in recent months, driven down by worries over Britain's national debt, but some City figures believe the pound may have been oversold.
"The risk of implosion for the financial system has largely passed, sparing the UK economy and sterling," David Powell, a currency strategist at Bank of America-Merrill Lynch told Bloomberg.
The Bank of England governor, Mervyn King, said last week that the recession had probably bottomed out, but warned that the recovery could be long and slow.
The rise followed a report that the UK Treasury has held talks with potential investors over selling its stakes in Lloyds Banking Group and Royal Bank of Scotland. It is understood, though, that any decision could be years away.wei作者: admin 时间: 2009-5-20 09:57
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Pound at highest level this year
Pound vs dollar
The pound has risen to its strongest level this year against the dollar, as investors grew less pessimistic about the health of the UK banking sector.
Sterling climbed as high as $1.5523 against the dollar - the highest since mid-December. It also rose against the euro to 1.1410 euros.
The pound got a lift as UK bank shares gained on hopes the worst might be over for the battered sector.
In January, the pound hit a 23-year low of $1.35 against the dollar.
Last July, the pound was worth more than $2 but fell sharply as the depth of the UK's economic downturn became clear.
Optimism about the UK's financial sector was sparked by a Financial Times report that the government was considering a sale of its shares in Lloyds and RBS.
Currency analysts expect the pound to continue to strengthen, particularly against the euro, as economic data from the euro zone continues to be gloomy.
"There is no doubt the UK economy is still in a bad way," said Mark O'Sullivan, director of dealing at Currencies Direct, a London-based foreign exchange trader.
"But currency markets are taking the view that sterling will outperform both the dollar and euro going forward," he added.作者: bill 时间: 2009-5-20 17:11