Pound edges upwards against the Dollar

Tuesday, January 19, 2010
In the early Asian trading session today, The British Pound gained versus the Dollar which lost ground against a host of other currencies as well. The Pounds trading picked up from $1.6341 on Mondays closing to trade at $1.6424 today, a reported 6 week low. Riding on the wave of the proposed Kraft-Cadbury Acquisition deal, The Pound has gained its ground against the Dollar as well as the Euro after a steep fall last week on speculations that the Bank of England may cut interest rates even further and quicker than expected. The revival of the Pound may also be attributed to the shortly expected announcement by the British Prime Minister, Gordon Brown of a second bank bailout package. The Pound being used as a substitute to the Euro has further bolstered its revival as the debt crisis in Greece worsens, making the Euro less lucrative against the Pound. However, the British Consumer Price Index data is expected to be released today which will decide the run-off for the pound hereafter.