The pound hit a 10-month high versus the euro on Monday as investors waited for British inflation data and a Bank of England decision later in the week.
Against sterling, the euro fell to 85.20 pence, the lowest since August 2022. It was last down less than 0.1% at 85.25 pence.
The pound was down 0.13% against the dollar at $1.281, not far below the 14-month high of $1.285 touched on Friday.
Sterling has rallied against both major currency pairs over recent weeks as economic data has suggested inflation is far more stubborn in Britain than in the United States or Europe.
The data has caused traders to factor in more rate hikes from the Bank of England, pushing up yields on British government bonds, boosting the pound.
The UK two-year government bond yield rose to 5.012% on Monday, breaching the 5% level for the first time since 2008. Yields rise as prices fall.
Source : Reuters
