- CNTV English - CCTV News

Reasons behind the rise of British pound

08-10-2010 13:33 BJT

Watch Video

Play Video

The value of the British pound is rising fast, after depreciation before the country's general election. The mid-point of the pound against the U.S. dollar has risen by 14 percent compared with the pre-election period. But what exactly has contributed to this recovery? Let's take a look.

CitiGroup says there are two reasons for the fast-rising sterling.

Firstly, the U.S. dollar has started a new round of depreciation against major currencies.

Secondly, the newly elected British government has been making efforts to cut down on the country's huge deficit, easing market fears over the domestic economy.

In addition, Britain's recovering economy has also been propelling the currency hike. In the second quarter, the nation's GDP has grown 1.1 percent, far above a previously forecast 0.6 percent. The country's banking industry has also seen a solid performance in the first half of this year, after pulling through the financial crisis.

But analysts believe there isn't too much room for the pound to rise further, as a pricey sterling will affect the country's exports.

Editor:Xiong Qu |Source: CNTV.CN

Hot Videos view more

The celebrations are still continuing as the victorious coach, Joachim Loew, has been honored for his achievement in his hometown of Freiburg.
Germany coach Loew honored in hometown of Freiburg

Chinese men´s national team continued its preparations for next year´s Asian Cup, as they managed a one-all draw against visitors Jordan during a football friendly in Harbin, the capital city of Northeast China´s Heilongjiang Province.
China held to 1-1 draw by Jordan

The defending world champs came into the contest with a perfect 6-and-oh record, but they would be in for a tough first half before opening things up in the second.
USA beat Slovenia 119-76 in quarter-finals

Hot Stories more

UK authorities believe killer of James Foley is a British national

Across the UK the hunt is on for James Foley’s killer, who authorities believe is a British national. As Richard Bestic reports from London, Prime Minister David Cameron cut short his summer break to lead his government’s response.

Israeli war jets renews Gaza strike as truce talks stalled

Three Palestinians were killed and 40 others wounded in the intensive Israeli war jets´ airstrikes on the Gaza city on Tuesday night, shortly before an end of a 24-hour ceasefire in the Gaza Strip,

Missouri police arrest dozens after violent night

As the protests in the town of Ferguson, Missouri turned violent with police facing ´heavy gunfire´ from some ´criminal elements´, cops fired tear gas, stun grenades and arrested 31 demonstrators on Monday night.

Picture in news more

More Video News

Choose TV Program