Sterling reaches one-year high versus dollar

<p>The pound reached a one-year high against the dollar today (September 21st).</p>

Sterling has hit a one-year high in forex trading today (September 21st) despite the release of August's record UK government borrowing figures.

Andy Scott, premier account manager at foreign currency exchange brokers HiFX, noted £1 was worth $1.63.

The pound has made gains against the dollar for the past two months – it was five per cent higher over this time period – and Mr Scott said this was in part thanks to market expectations for more easing from the Federal Reserve (Fed).

Last week, it was confirmed an open-ended programme of asset purchases is to be implemented by the organisation.

However, Mr Scott said more action may well be taken by the Bank of England after a number of central reserves outlined their future plans for growth.

As well as the Fed, the Bank of Japan is expected to cut rates, while the European Central Bank is ready to buy unlimited sovereign bonds.

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