Sterling rallies against major currencies

Sterling has reached a four-month-high against the euro and held gains on the dollar.

One pound traded at a high of €1.134 today (January 15th) at 14:00GMT as negative reports concerning Greece's debt situation dragged the euro down.

Sterling also continued to perform well against the dollar, although the American currency did show signs of creeping up in value due to positive data on US industrial output.

While things are looking up for the dollar, analysts said to Reuters that the euro was not likely to rise for some time.

Stuart Bennet, currency strategist at Calyon, told the news agency: "Fiscal woes may continue to limit, if not prevent, some upside movement in the euro in the weeks ahead."

The past few days have seen sterling hover around a four-week-high against the dollar as the Bank of England suggested economic stimulation would begin to tail off.

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Posted by Chris barber