Sterling up broadly; hits 3-mth high vs weak dlr

Mon Nov 9, 2009 12:02pm GMT
 
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* Sterling hits 3-mth high vs dollar of $1.6844 GBP=D4

* Perceived BoE end to QE, weak dlr, risk appetite lift stg

* More support as deadline nears for Kraft's Cadbury offer

* Trade-weighted sterling highest in nearly eight weeks

LONDON, Nov 9 (Reuters) - Sterling hit a three-month high against a broadly weaker dollar and a near eight-week high against the euro on Monday, tracking gains in currencies seen as higher risk as equity and commodity markets rallied.

The UK currency added to gains made after the Bank of England last week increased its quantitative easing programme by 25 billion pounds, in what investors believe is likely to be a final top-up.

The anticipation of sterling-positive M&A news also lifted the pound as a 1700 GMT deadline for Kraft Foods (KFT.N) to make a formal bid for British confectionery group Cadbury's (CBRY.L) approached. [ID:nL9392712]

Little in the way of UK data was due this week. Investors looked ahead to Wednesday's quarterly Inflation Report from the Bank of England, which will set out its latest forecasts for growth and prices. [ID:nL645014]

This left sterling tracking a broad rise in riskier, higher-yielding and commodity-linked currencies.  Continued...

 

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