Dollar hits new 26-year low against pound

Dubai: The dollar hit a new 26-year low against sterling yesterday as the euro hovered around an all-time high, mounting further pressure on GCC central banks to consider revaluation of their currencies as a policy option.
"Though the dollar's weakening has been an ongoing story for the past two years, the persistent weakness of the greenback against sterling and the euro during the past few weeks will once again stress the need for a rethink in the exchange rate policies in the Gulf," said HSBC economist Simon Williams.
Sterling soared against the dollar yesterday on inflation concerns. The pound hit $2.0438, as traders bought sterling heavily after June inflation data that pointed towards higher British interest rates. The euro rose to $1.3790 in early European trading, flirting with its all-time high of $1.38 it touched last Friday.