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| Version 1 | Version 2 |
|---|---|
| UK pound edges above the $2 level | UK pound edges above the $2 level |
| (10 minutes later) | |
| The pound has risen briefly above $2 - close to record highs - as investors price in an interest rate rise in July. | |
| In early trade in Europe, one pound touched $2.0006, almost reaching May's 26-year high of $2.013 dollars. | In early trade in Europe, one pound touched $2.0006, almost reaching May's 26-year high of $2.013 dollars. |
| Bank of England minutes released last week showed that the main rate-setting committee voted five members to four to freeze rates at 5.5% in June. | Bank of England minutes released last week showed that the main rate-setting committee voted five members to four to freeze rates at 5.5% in June. |
| Analysts said this makes an interest rate rise to 5.75% in July a near certainty to combat inflation. | |
| Good for tourists | |
| The likelihood of higher interest rates makes the pound more attractive to global currency investors, as they can gain higher returns. | |
| A stronger pound is also good news for British tourists hunting for bargains in the US, but does not augur well for UK exporters, who could suffer as their goods become more expensive. | |
| The pound has now gained 8% against the dollar over the past 12 months. | |
| Some analysts expect UK interest rates to get as high as 6% by the end of this year. |