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| Version 0 | Version 1 |
|---|---|
| Pound hits 14-year dollar high | Pound hits 14-year dollar high |
| (about 2 hours later) | |
| The pound has hit a 14-year high against the dollar amid speculation that the Bank of England will raise interest rates in the New Year. | The pound has hit a 14-year high against the dollar amid speculation that the Bank of England will raise interest rates in the New Year. |
| By early afternoon trading in Europe, the pound was at $1.9557, after earlier hitting $1.9588, its highest level against the dollar since 1992. | |
| Interest rate rises are now more likely in early 2007 after the Nationwide said house prices rose strongly in November. | Interest rate rises are now more likely in early 2007 after the Nationwide said house prices rose strongly in November. |
| UK interest rates are currently at 5%, after this month's quarter-point rise. | |
| Dollar weakness | Dollar weakness |
| The strong pound is good news for UK shoppers planning to travel to New York or other big US cities to buy their Christmas presents. | The strong pound is good news for UK shoppers planning to travel to New York or other big US cities to buy their Christmas presents. |
| However, it is bad news for UK exporters, as it means their products will be more expensive in the US. | However, it is bad news for UK exporters, as it means their products will be more expensive in the US. |
| While sterling has been boosted by recent UK interest rate rises, the dollar has been hit over the past weeks by poor US economic data. | While sterling has been boosted by recent UK interest rate rises, the dollar has been hit over the past weeks by poor US economic data. |
| The pound is now at its highest level since so-called Black Wednesday in September 1992, when it crashed out of the European Exchange Rate Mechanism (ERM) under John Major's Conservative government. | The pound is now at its highest level since so-called Black Wednesday in September 1992, when it crashed out of the European Exchange Rate Mechanism (ERM) under John Major's Conservative government. |