The strength of sterling is good news for those jetting off to the beaches of the Mediterranean this weekend, because their pounds will buy them more euros than they did a year ago. The same goes for travellers to the US, given that the pound is at its highest level in five years against the dollar.
Sterling has risen in the past year for three main reasons. Firstly, it had plenty of ground to make up after falling by 30% between mid-2007 and early 2008. During that period going abroad was enormously expensive.
Secondly, the economy finally turned the corner in the first few months of 2013 and it has been growing fast. The
Finally, the feeling in the markets is that the Bank of
Is this a good thing? It will widen
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