Demand is high for the monetary unit of England amid confidence for the currency's upward drive, according to Bloomberg.
Coming off a week when the English pound climbed to its top rate since August 2009, the pound is projected to continue pushing ahead as the regional economy continues strengthening and the Bank of England drives toward a rate hike sooner than expected.
"In a world that's been starved of significant moves, which has become used to low volatility in the foreign-exchange market, when something like this suddenly emerges, you could see quite a big move develop," chief currency strategist Simon Derrick with Bank of New York Mellon Corp. in London told the news source later last week. "For the last few years clearly you've been in a $1.50-$1.70 world, so the idea you could suddenly break through that opens up a lot of new territory."
Thus far this month, the pound has risen about 1.6 percent against the world's reserve currency.
Reuters reports the interest rate hike by the Bank of England, which said it did not want to boost borrowing costs until the economy showed signs of growth, is likely by the end of the year.
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