The pound appreciated against the U.S. dollar today due to continuous increase in U.K. home prices for consecutive ninth month, reinforcing the signs the economic recovery.
GBP advanced versus almost all of its most-traded counterpart currencies after Home track Ltd. said the average cost of a home has been increased from March.
The pound gained 0.5 percent to $1.5448 as of 10:50 a.m. in London. It appreciated 1.1 percent to 86.15 pence per Euro, after earlier reaching 86.07 pence. It is estimated that Pound may climb to $1.56 in the near future.
As per experts it is expected that The Bank of England may raise its interest rate to restrict the inflation.
The inflation rate in U.K. soared to 3.4 percent in March, exceeding the 3 percent limit. Higher energy costs and the weakness of the pound have added fuel to the rising price levels. Bank of England officials vowed to keep a track of price expectations closely because the inflation stance is a concern to some of them, according to the minutes of their April 8 meeting.
The inflation rate in U.K. soared to 3.4 percent in March, exceeding the 3 percent limit. Higher energy costs and the weakness of the pound have added fuel to the rising price levels. Bank of England officials vowed to keep a track of price expectations closely because the inflation stance is a concern to some of them, according to the minutes of their April 8 meeting.
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