Holiday Rentals News - Pound buoyant against major currencies

Pound buoyant against major currencies

The pound was boosted by dollar weakness this morning.

Experts have suggested the currency was brought up by predictions of a slower dip in the UK base rate than that of the US.

Coming in as high a $2.06 this morning, the pound neared a 26-year record high against the dollar which showed comparative weakness today.

Meanwhile, the euro dipped at 70.08 pence with the dollar showing general frailty against the 13-nation currency among others, in expectation of a further rate cut at this Wednesday's meeting of the Federal Reserve.

The US rate setter is widely anticipated to make a cut as a preventative measure with a dramatic downturn of the housing market following the sub-prime mortgage crisis, the worst the country has seen for 16 years.

Hans-Guenter Redeker, head of currency strategy at BNP Paribas SA in London, told the website: "Dollar weakness is going to continue. What's driving the market is interest-rate and yield differentials, which are supportive of other currencies against the dollar."

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