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Dollar V Gbp

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At 9.45 am on Bloomberg europe 2.0003 dollars to the pound

Just another notch on the downward spiral..

GBP rates could well rise.. Another nail for this coffin.. As could Yen and more carry trade unwinds..

Index is banging on 82 and not looking happy.. Watch for 80 (tho there has to be a fight there)..

talk is now that having broken 2 to 1 it will stay over the 2 and move a little higher as the UK raises rates this month and the US , if anything , has to reduce them to aid its ailing housing market

Pound reaches 26-year dollar high

Sterling has continued to climb against the US dollar, moving above $2.01, the highest rate since June 1981.

The currency broke through $2 level on Tuesday after unexpectedly high UK inflation figures indicated further UK interest rate rises were likely.

The Bank of England is widely expected to raise rates on 10 May and at least once more later in the year.

The US dollar is also at two-year lows against the euro and 17-year lows against the Australian dollar.

More here:

http://news.bbc.co.uk/2/hi/business/6566715.stm

LaoPo

Sounds great to me.

My brokers have me in well diversified portfolio. Gold, silver and something like 8 currency funds.

Plenty in foreign banks, utilities and stocks which also pay decent dividends. My natural resouces funds

since investing in them 5 years ago have been up about 30% a year.

Watch what you think may happen with interest rates, dollar down inflation up, the U.S. is a importer.

Theres talk about it stabilising at around $2.40 to the £ but our interest rates could be on the cards for a rise up to around 6 %.

Great for savers but not so jolli if you have a big Mortgage...about £90 a month extra on a £250k :o

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