BUSINESS ABROAD: Comeback of the Pound

For the first time in eight months Britain's pound was able to look the U.S. dollar in the eye last week. In London, Zurich, New York, Tokyo, wherever money is exchanged, the pound fetched its full par value of $2.80, halting the heavy drain on Britain's gold and dollar reserves and all talk of imminent devaluation. The renewed confidence in the pound was the result of a tough new policy of boosting Britain's bank rate from 5% to 7%, thus tightening up the money supply to curb runaway home-front inflation.

Within days, traders on world money markets, who had been...

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