//
The pound increased by 0.2 per cent at $1.5823 against the dollar, near to its seven-week high on Tuesday of $1.5896, Reuters reports.
According to the news provider, these gains were due to modest purchasing by some Asian sovereign names, although the dollar was broadly weak after increased selling due to speculation the US Federal Reserve (Fed) will add extra liquidity to the banking system.
Michael Hewson, analyst at CMC Markets, said sterling may increase to $1.60, adding: "Even if the Fed goes in for quantitative easing, I think the Bank of England is a bit far away from that with growth at nine-year highs and inflation above three per cent."
But it was not all positive news for the pound as it slipped against the euro.
The single currency rose by 0.13 per cent this morning, following on from its one per cent hike in late trade yesterday.
Posted by Greg Secker
