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REAL-LIFE PROBLEMS, INNOVATIVE SOLUTIONS

BACKGROUND: With investors exhibiting distinct signs of becoming worried about holding currencies as a ‘store of value’, the relative paths of monetary policy within the major economies are taking on an increasingly important role in determining price movements in the FX markets. As sterling has often proved to be one of the more interest rate-sensitive of currencies, we look at what has happened when comparable conditions have prevailed in the past.

As readers will no doubt be aware, beyond 10

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