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According to Bloomberg, forex traders saw sterling gain 0.2 per cent against the US dollar to hit $1.6141 in London this morning (April 4th 2011), with the unit having touched a high of $1.6177 earlier in the session.
"There has been over-pessimism on the UK economy," said Neil Jones of Mizuno Corporate Bank. "There's also risk-on sentiment at the moment. If we continue to get higher stocks, sterling will be one of the currencies to gain."
Sterling also rose by 0.3 per cent to 88.08 pence against the euro, while it was 0.3 per cent stronger against the yen at 135.66.
The Bank of England's Monetary Policy Committee is set to meet later this week to discuss interest rates, having kept the base rate at a record low of 0.5 per cent since March 2009.
Posted by Clive Arneil
