(Bloomberg) -- The pound may gain for a fifth week,
its best performance in more than a year, as expectations the
higher yield advantage the U.K. currency offers over other major
currencies spurs carry trades
The U.K. currency traded near its strongest since June 1981
after the Bank of England raised interest rates last week for a
fifth time in 12 months to 5.75 percent, its highest in six
years. Carry trades involve borrowing in low-yielding currencies
to fund higher yielding investment elsewhere.
Read more at Bloomberg Currencies News
its best performance in more than a year, as expectations the
higher yield advantage the U.K. currency offers over other major
currencies spurs carry trades
The U.K. currency traded near its strongest since June 1981
after the Bank of England raised interest rates last week for a
fifth time in 12 months to 5.75 percent, its highest in six
years. Carry trades involve borrowing in low-yielding currencies
to fund higher yielding investment elsewhere.
Read more at Bloomberg Currencies News
No comments:
Post a Comment