New York Sun quotes portfolio manager Axel Merk as the Pound Tops $2:

"The main reason for the pound's ascent, according to Axel Merk, manager of the Hard Currency Fund, is that the Bank of England has taken a much more aggressive stance on controlling inflation than that of its American cousin, the Federal Reserve. While the Fed is worried that hiking rates to combat creeping inflation could further weaken the subprime-infected credit markets, the Bank of England has been ratcheting up the cost of money, consequently boosting its currency."