The British Pound gained against the U.S. Dollar for its fifth consecutive week on speculation that the Bank of England (BoE) will continue to raise its interest rates while the U.S. Federal Reserve remains on hold. ``The pound's been moving higher against the dollar as concerns rise about the state of the U.S. economy, and on the outlook for BOE interest rates,'' said Ian Gunner, head of foreign-exchange research at Mellon Bank NA in London. ``At the moment all the traffic has been one way, and there's no reason why sterling shouldn't go higher.'' The Bank of England (BoE) raised its rates for a fifth time in a year last week to help slow inflation, which has been riding above 2 percent. Futures traders have speculated a quarter percent increase to 6.25 percent by the end of this year.
In the foreign exchange against the U.S. Dollar, the Pound Sterling traded at $2.0367, which is its highest level since June 1981 before softening to $2.0357. The British Pound traded at $2.0108 over a week ago. Against the Euro, the British Pound was at 67.77 pence per Euro, from 67.92 June 12.
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