THE GUARDIAN:
· Pound hits its highest value in 26 years
The dollar remained under strong pressure on the foreign exchange markets last night as fresh concerns were raised about the vulnerability of Wall Street to the crumbling American housing market.
With the pound trading at its highest level against the dollar since 1981, the credit rating agency Moody's said it had placed a new $6bn (£3bn) tranche of securities backed by US mortgages under review for a possible downgrade. The move followed separate announcements by Moody's and a rival ratings agency, Standard & Poor's, on Tuesday, that put $17bn of sub-prime mortgage-backed securities on credit watch, adding to growing concerns about the health of the world's biggest economy. Dollar falls again amid growing US fears (more)
Mark Alexander
