The British pound hit its highest level against the dollar in nearly 15 years Tuesday.

In foreign exchange trading, it costs $2 to buy each British pound.

The rise against the dollar follows new data showing inflation in the U.K. at 3.1 percent, well above the central bank's goal of keeping inflation at just two percent.

Speculators are betting that the Bank of England will now raise interest rates to fight that inflation.

Higher interest rates will help some investors make more money.

The stronger pound will make it easier for people in the U.K. to buy imported goods. However, it makes British-made goods more expensive on world markets.

Some information for this report was provided by AFP, AP, Bloomberg and Reuters.