Dollar Gets Pounded

As the pound passes $2, Brits expected to flock to U.S.
By Sarah Levy,  Newser User
Posted Apr 18, 2007 11:53 AM CDT
Dollar Gets Pounded
In this photo illustration, two British pound coins rest upon a US$1 bill, in London Tuesday April 17, 2007. The British pound broke through the US$2 mark on Tuesday for the first time in nearly 15 years after new data showed an unexpected surge in inflation, prompting speculation of interest rate...   (Associated Press)

The British pound hit a 26-year-high against the dollar this morning, triggering inflationary fears there as it pushed past $2 for the first time since Margaret Thatcher's early reign. As  inflation figures spiked to 3.1% in March—the highest  in 10 years—the middle class got hit the hardest, the Daily Telegraph reports.

Research in today's Telegraph suggests that the cost of living for middle-class Britons is double the official rate, with housing and gasoline prices skyrocketing. But it is good news for the tourist industry here: Anticipate a surge in British travel to the States. (More pound stories.)

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