FOREIGN EXCHANGE: Comeback for the Pound

The British pound, so weak a few months ago that further devaluation was predicted, has put on a surprising comeback. In London last week, spot sterling hit $2.80, the highest since its brief upsurge last March when Chancellor of the Exchequer Richard ("Rab") Butler tightened Britain's belt another notch with a new Tory budget. Transferable sterling (i.e., pounds bought in the free markets outside the sterling bloc), which sold for $2.40 eleven months ago, was up to $2.70. Some of the sudden demand for pounds stemmed from speculators who had expected further devaluation and had sold sterling short. Now...

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