British Pound Soars To New Month High Against US Dollar

TEP – 4 August 2009

The British pound rose to a new multi-month high against the US dollar after a report showed that U.K.'s manufacturing sector expanded for the first time since March 2008 in July, adding to signs that the economy is emerging from the worst recession in a generation.

Th CIPS/Market Manufacturing Purchasing Managers' Index or PMI rose to 50.8 in July from an upwardly revised 47.4 in June. Economists had expected the index to rise to 47.7. This was the first time the index climbed above 50 since March 2008.

A reading above 50 indicates expansion in the sector, while a reading below 50 signals a contraction.

The British currency was also boosted by a rise in U.K. stock prices

Against the U.S. dollar, the British pound climbed to 1.6882 during early deals on Monday. This set the highest point for the pair since October 21, 2008. The next upside target level for the pound-dollar pair is seen around 1.766.

The Singapore currency edged down to 2.4276 against the British pound during early Asian trading Tuesday. This set the lowest point for the Singapore dollar since June 30, 2009