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U.K. Pound Hits 14-year High Against Dollar

The sagging U.S. dollar fell Thursday to its lowest level against the British pound since 1992.

The pound hit $1.9562 in morning trading, its strongest showing against the dollar since September 1992, before Britain crashed out of the European Exchange Rate Mechanism.

The pound last reached the $2 level on Sept. 8, 1992.

In 1992, the British government raised base interest rates as high as 15 percent in a futile effort to defend the pound's value against the German mark. After Britain dropped out of the Exchange Rate Mechanism, the pound plummeted to around $1.50 by the end of 1992.

The pound traded at US$1.9462 late Wednesday in New York as the dollar staged a modest rally on a report that the U.S. gross domestic product increased at a better-than-expected annual rate of 2.2 percent in the third quarter.