Pound Advances to Highest in 26 Years on U.K.'s Rate Advantage Over U.S.

(Bloomberg) -- The pound climbed to a 26-year high
against the dollar on speculation the Bank of England will lift
interest rates this year as losses on U.S. subprime mortgages
prompt the Federal Reserve to stay on hold.

The U.K. currency rose for a fourth day after Bear Stearns
Cos. reported losses on U.S. hedge funds that bet on bonds backed
by subprime mortgages. The BOE today released minutes of its July
5 meeting, showing policy makers voted 6-3 in favor of raising
rates to a six-year high. Inflation exceeded its 2 percent target
for a 14th month in June, a report showed yesterday.


Read more at Bloomberg Currencies News