£1 = $2

Those of us with a vaguely transatlantic bent have been mentally doubling UK

prices (or halving US ones) for some time, but now it’s official: the

British pound is worth more than $2. British tourists are sending up quiet

thanks to the latest UK inflation report, which hit 3.1% in March, outside the

Bank of England’s target band, making a rate hike very likely. That, and the

perenially-popular carry trade:

"The sky’s the limit for sterling," Simon Derrick, chief currency

strategist at Bank of New York, said in London. "It’s a favorite for

investors because of the rate differential."…

"Sterling is going to keep on rising," said Steven Bell, who manages

GLC Ltd.’s so-called global macro hedge fund. "We have very high interest

rates here in the U.K. and an attractive macro background. I think

$2.10 is the level that the pound will settle at."

This is also good news for US companies doing a lot of business in the UK –

the big financial-services firms spring to mind.

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