Pound rises to its highest level against the euro in more than two and a half years as ECB eyes urgent rate cuts
The pound yesterday reached its highest level against the euro in more than two and a half years.
The rise in sterling came as the European Central Bank (ECB) prepared to cut interest rates to support the struggling economy.
The pound rose to €1.2136 – just below the €1.2189 it reached in March 2022. It has not been higher than that since the Brexit vote in 2016.
It came as investors bet the ECB will cut interest rates again tomorrow in a bid to revive the eurozone economy.
In contrast, the Bank of England is expected to leave interest rates unchanged next week.
Lower interest rates tend to weaken a currency, so the prospect of a rate cut in the eurozone, but not in the UK, has pushed the euro lower against the pound.
Rally: The pound rose to €1.2136 – just below the €1.2189 it reached in March 2022. It has not been higher than that since the Brexit vote in 2016
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