Cocoa Declines in London as Pound's Rally Boosts Costs for Foreign Buyers

(Bloomberg) -- Cocoa fell in London after the U.K.
pound rose to the highest in four months against the euro,
making the ingredient used to make chocolate more expensive for
investors holding other currencies.

The pound gained on speculation the Bank of England, the
U.K.'s central bank, will add to four interest-rate increases
since August 2006 to contain inflation in Europe's second-
largest economy. The London cocoa contract, traded on the
Euronext.liffe exchange, is denominated in the U.K. currency.


Read more at Bloomberg Commodities News