Tuesday, April 17, 2007
Pound Breaks $2 Barrier
The Pound has just broken through the $2 barrier. While tourists and importers will give a rousing cheer, exporters will be holding their heads in their hands. I believe in a strong currency, but more important is a sustainable currency. There's nothing worse for a trading business than a fluctuating exchange rate. With another interest rate rise on the horizon here, and a rate cut in the US it's possible to imagine the Pound hitting $2.25 before too long. I am no economist, but I have my doubts as to whether than is a healthy trend, at least in the short term. Discuss.