The British pound's value reached its highest point against the US dollar in 26 years. On Tuesday, the pound was worth two United States dollars for the first time since 1992.and the dollar later slipped to its lowest point against the pound since 1981. Economists say that the slide was a result of predictions that the Bank of England will raise interest rates soon. and that the US Federal Reserve will lower theirs. A Bear Stearns analyst predicted that the pound will be worth $2.10 a year from now. The euro rose to a value of $1.3614, getting closer to its all time high of $1.3667 set in December of 2004. The European Central Bank also plans to raise their interest rate.
