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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) prepares to cut interest rates to shore up the troubled economy.
The pound rose to 1.2136 euros, just below the 1.2189 euros it reached in March 2022. It has not been above that figure since the Brexit vote in 2016.
It came as investors bet the ECB will cut rates again tomorrow in a bid to revive the eurozone economy.
By contrast, the Bank of England is expected to leave rates unchanged next week.
Lower interest rates tend to weaken a currency, so the prospect of a rate cut in the eurozone, but not the UK, has pushed the euro lower against the pound.
Rally: The pound rose to 1.2136 euros, just below the 1.2189 euros it reached in March 2022. It has not been higher than that since the Brexit vote in 2016.
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