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British Pound rises on view Euro referendum may be delayed
London, June 09: The British Pound rose against the Euro on speculation that the UK Government will delay holding a referendum on adopting the European common currency.
London, June 09: The British Pound rose against the Euro on speculation that the UK Government will delay holding a referendum on adopting the European common currency.
A decision to delay the vote "will underline the Pound's separate identity," said an economist. On the basis of superior economic performance in the UK, "the Pound will
strengthen over the next two years."
The Pound strengthened to 70.20 pence per Euro, paring its decline against the 12-nation currency this year to 7.2 percent. The Pound was at $ 1.6640 from 1.6626. On Friday, it rose to $ 1.6709, the highest level against the Dollar since Oct. 22, 1999.
The UK Central Bank last week left its benchmark interest rate at 3.75 percent amid signs consumer spending may keep Europe's second-largest economy growing. In contrast, the ECB pared its rate from a half percentage point to 2 percent after the Euro's 26 percent gain against the Dollar in the past 12 months sapped growth.
Britain's economy will expand more than twice as fast as that of the nations sharing the Euro this year, according to the European Union.
The Euro region's $ 8 trillion economy didn't grow in the first quarter, and is forecast to expand 1 percent this year, according to figures from Eurostat, the EU's statistics office. It expects the UK economy to grow 2.2 percent this year.
Bureau Report
The Pound strengthened to 70.20 pence per Euro, paring its decline against the 12-nation currency this year to 7.2 percent. The Pound was at $ 1.6640 from 1.6626. On Friday, it rose to $ 1.6709, the highest level against the Dollar since Oct. 22, 1999.
The UK Central Bank last week left its benchmark interest rate at 3.75 percent amid signs consumer spending may keep Europe's second-largest economy growing. In contrast, the ECB pared its rate from a half percentage point to 2 percent after the Euro's 26 percent gain against the Dollar in the past 12 months sapped growth.
Britain's economy will expand more than twice as fast as that of the nations sharing the Euro this year, according to the European Union.
The Euro region's $ 8 trillion economy didn't grow in the first quarter, and is forecast to expand 1 percent this year, according to figures from Eurostat, the EU's statistics office. It expects the UK economy to grow 2.2 percent this year.
Bureau Report