6 January 2004, 13:36  Sterling extends gains to above $1.82, 11-yr high

LONDON, Jan 6 - Sterling extended early gains versus the dollar on Tuesday, rising above $1.82 to fresh 11-year highs as relentless dollar sales triggered stop-loss buying of the higher-yielding British currency. The dollar has been under pressure on concerns about the U.S. current account deficit and low U.S. interest rates. A Halifax report showing the strongest rise in UK house prices since February underpinned expectations the Bank of England is set to raise interest rates early this year, if not at this week's meeting which starts on Wednesday. "In the last couple of days sterling is even outperforming the euro and this might be due to some nervousness ahead of the Bank of England's meeting this week," said Lee Ferridge, head of global currency strategy at Rabobank in London. "The Halifax survey was strong and there are a few people expecting a rate hike on Thursday, although I don't personally think they will raise rates." By 1032 GMT sterling had risen to $1.8218 , up 0.8 percent on the day.//

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