Monday, September 8, 2008
The pound may be “massively overvalued against the dollar,”
Currency traders are starting to take the British government at its word, putting the tumbling pound on course for the worst year since 1992. The pound is about 20 percent too strong against the dollar, even after falling more than 10 percent this year, according to New York-based International Foreign Exchange Concepts Inc., the world's biggest currency hedge-fund company. Futures traders became more bearish on the U.K. currency than at any time in the past 16 years.