Pound Rises Most Since June as King Denies Talking Down Currency
This article is for subscribers only.
The pound climbed the most since June against the dollar this week as Bank of England Governor Mervyn King said policy makers aren’t trying to talk it down.
Sterling strengthened the most against the euro since the week ended Feb. 8. “Markets determine the level of exchange rate, not us,” King said in an interview with ITV News on March 14, after the pound dropped to a 2 1/2-year low against the greenback. A gauge of U.K. inflation expectations rose to the highest in 4 1/2 years amid speculation the government may change the Bank of England’s remit to reduce the emphasis on price stability in order to boost the ailing economy.