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British rates may overtake US rates as soon as next month

Discussion in 'Forex Daily News & Outlook' started by prav, May 18, 2007.

  1. prav

    prav Moderator
    Staff Member

    Apr 28, 2007
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    The Yen on Monday dropped to record lows against the Euro and fell to its lowest against the Dollar since February after the Group of Seven passed over the issue of the Japanese currency?s weakness. Investor?s appetite for high-yielding currencies also helped propel Sterling to a near 15-year peak above 1.99 as strong British data reinforced the view that the Bank of England will raise interest rates again as soon as next month. GbpUsd rallied to 1.9940, its highest since September 1992.At weekend meeting in Washington, G7 finance ministers reiterated calls for exchange rates to reflect economic fundamentals and urged greater currency flexibility in China. Yesterday's rise in the value of US retail sales was largely due to higher energy prices. Total sales increased by 0.7% in March, core sales (ex- autos) rose by 0.8%; almost half the gain was due to the surge in gasoline prices, which pushed up the value of sales at gasoline stations by 3.1%.


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