The rise of the $2 pound

You need to be at least 40 to remember when the pound regularly traded at more than $2. It broke thr...

You need to be at least 40 to remember when the pound regularly traded at more than $2. It broke through that point recently for the first time since the UK was thrown out of the European exchange-rate mechanism in 1992. Most people view a $2 pound as a historical aberration and assume it is about to slide again, just as it has in the past. Think again. The British currency may go even higher - perhaps to $2.50. Peter Dixon, global equities economist at Commerzbank, said: "There are a lot of good reasons to think it will carry on. The carry trade has been boosting it, and it's hard to ar...