Sterling rises to 16-month high against euro
The pound rose against the euro, climbing to a 16-month high, as a report showed UK consumer-price inflation accelerated for the first time in 10 months in April.
Sterling advanced after the Office for National Statistics said yesterday in London that UK consumer prices rose an annual 1.8pc last month, compared with 1.6pc in March, exceeding the 1.7pc average estimate of analysts in a Bloomberg survey. That is the first increase since last June.
The pound also advanced amid speculation the Bank of England will take steps to cool Britain's housing market.
"We are trading at very strong levels on sterling against the euro," said Niels Christensen, chief currency strategist at Nordea Bank in Copenhagen.
The pound appreciated 0.2pc to 81.4p per euro at lunchtime in London yesterday after reaching 81.2p, the strongest level since January 2013.