Tuesday, July 10, 2007

Pound Gains to 26-Year High Against Dollar, Gilts Surge on Subprime Woes

(Bloomberg) -- The pound rose to a 26-year high
against the dollar and U.K. bonds surged after Standard & Poor's
said it may cut ratings on $12 billion of bonds backed by U.S.
subprime mortgages.

The U.K. pound climbed the most against the dollar in more
than a month. The currency was buoyed earlier after a report
showed sales at U.K. retailers increased at the fastest pace
since March last month, stoking speculation the Bank of England
will raise interest rates from a six-year high.


Read more at Bloomberg Currencies News

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