Dollar Rises to 6-Month High Against British Pound

NEW YORK (AP) -- The dollar is at a 6-month high against the British pound after the Bank of England predicted rising prices.

The central bank says inflation in the U.K. may rise to 3 percent by summer, above its target, but it will look past higher prices to help the country's flagging economy.

Monetary policy designed to support the economy tends to weigh on a nation's interest rates. Lower rates in turn can weaken a currency, as investors often seek higher returns in other markets.

In midday trading in New York Wednesday, the pound is down to $1.5533 versus $1.5652 late Tuesday.

The dollar is up a bit against the euro, a currency used by 17 European countries, and down slightly versus the Japanese yen.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

DocumentId: 2253053, ~/Articles/ArticleHandler.aspx, 7/28/2014 5:15:07 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

TREND TRACKER: Get Rich When the Web Goes Dark

It's time to say "goodbye" to your Internet! One bleeding-edge technology is about to put the World Wide Web to bed. And if you act right away, it could make you wildly rich. Experts are calling it the single largest business opportunity in the history of capitalism… The Economist is calling it "transformative"... but you'll probably just call it "how I made my millions." Big money is already on the move. Don't be too late to the party – find out the 1 stock to own when the Web goes dark.


Advertisement