Hopes rise in the City

THE POUND bounced higher for the second day running yesterday as hopes grew that Norman Lamont would provide clues to the Government's new economic strategy in his conference speech today.

In London, sterling ended 1.64 pfennigs higher at DM2.4642 and rose to DM2.4800 later in New York, bringing the recovery from Monday's low point to 12 pfennigs. Sterling was also helped by lower market interest rates in Germany.

Shares also extended their recovery from Monday's steep fall amid hopes that the Chancellor might cut interest rates again. The FT-SE 100 Index of leading UK shares rose by 28.7 points to 2517.1.