How dare the British price us off their island. The news that the pound sterling has crossed the $2 hurdle and set a 15-year high is causing consternation among those comfortable with using the words “lift” and “holiday” instead of elevator and vacation.

For many, the gyrations in the Brazilian real or the Indonesian rupiah are about as interesting as stale beer. Movements in the pound, on the other hand, affect our lives — or at least the lives of those of us who are tourists, expats, or students studying in Britain. For those who hop across the pond frequently to go shopping, the pound’s ascent is a body blow second only to losing the Concorde.

So what is the outlook for the pound, and will this new 2:1 paradigm cause Americans to travel elsewhere?

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.

Though at its latest meeting the BOE kept interest rates flat, in January the government responded to inflation concerns by jacking up the cost of money to 5.25%. (For those not paying attention, it’s the same here in America.) A year earlier the rate stood at 4.5%. The most recent consumer price index reading in Britain is 3.1%; this compares with a published target of 2.0%. The rate has been creeping up and is currently considerably above the EU average of 2.2%.

In other words, economic conditions in Britain sound quite a bit like those in America a year or so ago. The British consumer has been spending with enthusiasm, keeping the economy robust — the latest GDP figure showed year-over-year gains of 3% — and also keeping the government concerned.

Although real estate markets have been climbing at double-digit rates in Britain, there appears to be little worry that lending practices have become as sloppy as in America. The word “bubble” pops up here and there, but it is used more to decry the upward march of prices than foolish loan-making. And no wonder. According to many sources, houses in the Greater London area rose another 15% last year. The average home price in the region is estimated to be considerably higher than $625,000, with some estimates as high as $725,000.

Currency traders are therefore not looking so much at underlying economic factors or at current central bank interest rates but rather at the trend of rates. America is likely to be shaving rates going forward to keep the economy rolling while Britain may have to become even tougher to rein in rising costs.

“In the near term, people will be taking some profits,” Mr. Merk says. “In the intermediate term, the pound will move higher.”

Higher? Will we be looking at a $3 pound any time soon? No one knows, of course, but certainly as the currency strengthens it will begin to affect Americans’ appetite for visiting Big Ben.

According to Valerie Wilson, head of the sizable eponymous travel agency, that point has not yet been reached. “Some of the leisure clients have decided to stay away,” Ms. Wilson says. “But some hotels have begun to guarantee reservations in dollar terms. Also, some haven’t raised rates for a while. Still,” she says, “it’s expensive.”

Ms. Wilson points to heavy business travel as an offset to softer tourism from America: “London is still very busy. Hotel occupancies are about the best they’ve ever had.”

Indeed, occupancy rates in typically quiet January were 71.6%, up from 68.5% a year earlier. Global Refund reports that in February spending by overseas visitors claiming VAT refunds rose 5%.

Still, the bite is on. A brief survey of hotel prices bears this out. Perennial favorite Claridges is now charging 629 pounds for a deluxe double room, while a similar room at the Dorchester runs about 550 pounds, or more than $1,000. Don’t even think about booking a night in the Dorchester’s fabled Oliver Messel Suite, which may actually be better known than the theater designer, unless you have a spare $6,000 lying around. The Waldorf, for reference, is charging about $500 a night for a double.

Also, if traveling to London, you might want to bulk up ahead of time. Dining out has certainly gotten more expensive for Yanks. At some of the top restaurants, such as Gordon Ramsey and the Square, Zagat puts the average price of a meal at more than 80 pounds a person, or $160. That compares with $86 for our hometown Four Seasons or $92 at Bouley. For a real apples-to-apples comparison, consider Nobu: 71 pounds in London compared with $77 in New York — almost double.

What about shopping? Things are rather depressing in this corner as well. A classic Hermes men’s tie is selling for $158 in New York; the same tie is priced at 88 pounds in London. Ladies’ scarves are $325 here at home; in London they are selling for 186 pounds. It is true that shoppers can still recover some of the 17.5% VAT upon returning home, while New Yorkers must pay sales tax. However, if you bring in substantial goods from overseas these days you are likely not only to pay duty, but also to be socked with a New York State sales tax down the road. Bottom line: There are few bargains.

Will the pound’s ascent slow down the cross-pond migration? “It’s too soon to tell whether the $2 pound will have some psychological impact,” Andrew Weir of VisitBritain says. “We’re trying to help by recommending people buy things here ahead of going to London, like train or theater tickets, so they can use dollars.”

Good idea, but it’s hard to take your hotel room with you. My advice — see the Grand Canyon this summer.

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