British Pound Sterling (GBP) in US Dollar (USD): 1 GBP = 1.6056 USD (+0.00460, +0.287%)

With the prospect of interest rate rises in the UK being fuelled by comments in national newspapers by Bank of England member Martin Weale, the British pound traded up against the US dollar yesterday.

There was more cautious optimism as the Pound broke through the psychological barrier of 1.600 against the greenback.

Exchange Rate Update: US Dollar v GB Pound

More analysis of the GDP drop in the fourth quarter of last year has pointed to the possibility of the spectacularly bad weather in the country accounting for as much as 1% of the fall. This in turn would mean that the perceived slowdown may not be as bad as previously feared.

In news which may annoy several politicians, especially those currently occupying number 10 and 11 Downing Street, the National Institute for Economic and Social Research has analysed the proposed drastic cuts by the coalition government, and has suggested that they delay their implementation. This, coupled with a consistent fall in house prices in the country could see the dollar bounce back against this strong run from the pound.

Finally, with unrest in Egypt continuing unabated, many analysts see the dollar as a safe haven in the global markets exchange rate markets.