The Pound Sterling – the official currency of the United Kingdom
The UK Currency is acknowledged as one of the most powerful currencies in the world, compared to the US Dollar and the Euro. The Pound Sterling is traded at high volumes in the Foreign Exchange Market, at a decent rate. A lot of Foreign Exchange traders invest their money with the Pound, on the basis of not seeing many fluctuations in their price movements.
As the UK rate moved in close cohesion with the Euro Since 2006 though, the UK Currency deviated slightly from the paths of the Euro. Analysts attribute this to the rise in inflation and recent hikes in the interest rates, announced by The Bank of England. These reasons were enough to cause the UK Rate to reach its highest levels in 15 years.
The UK Currency has always been considered to be a strong performer, despite sub-prime mortgage concerns in the States and other global economic factors. The Pound Sterling was at its best ever performance against the US Dollar in November 2007, when it was valuated at 2.116 Dollars per Pound. The UK Currency settled at much lower levels after this high on count of currency fluctuations.
The Pound, as the official UK Rate of Exchange, has managed to hold on to its reputation in the Foreign Exchange market. The pound’s performance with the Euro has forced analysts to take stock of its stability. With the US Dollar not doing that well due to an impending credit crunch in the States, it remains to be seen if the UK Currency can be the most popularly traded currency in the Foreign Exchange market.