Dollar Weakens Vs. British Pound

The dollar weakened against the British pound Tuesday after the British government’s new budget gave the Bank of England little reason not to raise interest rates.

The budget includes no income tax increases and the higher levies on gasoline, wine, beer and tobacco were not seen as sufficient to dampen inflationary pressures. That increases the odds of an interest rate hike.

The pound’s strength also contributed to the dollar’s weakness against the German mark and the Japanese yen. The dollar finished the day unchanged against the yen and mark.

Exchange Currency in Dollars Dollar in foreign currency Canada .7083 1.4119 France .1639 6.1005 Germany .5497 1.8193 Great Britain 1.6692 .5991 Italy .000558 1791.75 Japan .007714 129.64 Mexico .116530 8.5815