Barclays profit boosts pound against dollar

Profits at Barclays have been cited as the leading reason for the pound to hit a ten-month high against the dollar.

The bank reported an eight per cent rise in half-year profits yesterday (Monday, August 3rd), which also led to the FTSE 100 reaching levels not seen since October 2008.

Sterling rose to $1.68 against the dollar and also strengthened against the euro, reaching a one-month high.

David Clements, senior analyst at Caxton FX, said that although the pound is ’still a long way off the $2 to £1 heights of last year’, the currency has rebounded from its 23-year low of $1.35 in January.

’Over the medium-term we are forecasting for sterling to continue to gain against the greenback, particularly if banks and blue-chip stocks show renewed strength, as Barclays did,’ he added.

’Investors will now be focusing on Thursday’s Bank of England interest rate decision, as well as Lloyds and Royal Bank of Scotland’s corporate earnings figures also out this week.’
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