This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/10405543.stm
The article has changed 6 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| Sterling hits 19-month euro high | Sterling hits 19-month euro high |
| (about 2 hours later) | |
| The pound has hit a 19-month high as debt concerns weigh down on the euro. | |
| Sterling touched 1.2222 euros on Thursday, the highest it has been since the immediate aftermath of the financial crisis in November 2008. | Sterling touched 1.2222 euros on Thursday, the highest it has been since the immediate aftermath of the financial crisis in November 2008. |
| Markets continue to worry about the European debt crisis, with the perceived risk of a default by Greece hitting an all-time high. | Markets continue to worry about the European debt crisis, with the perceived risk of a default by Greece hitting an all-time high. |
| Leading shares across Europe lost ground, with the UK's FTSE and Germany's Dax indexes down about 1.5%. | |
| France's Cac 40 lost 2.4%. | |
| Investors were concerned by comments by the US Federal Reserve on Wednesday evening, raising doubts about the strength of the economic recovery, largely reflecting "developments abroad". | |
| Future rises | |
| The pound strengthened largely on the back of negative sentiment towards the euro. | |
| But it was also boosted by disagreement at the Bank of England about whether to raise interest rates. | |
| At the Bank's latest monetary policy committee meeting, Andrew Sentance broke with colleagues - including governor Mervyn King - to vote in favour of a rate rise. | At the Bank's latest monetary policy committee meeting, Andrew Sentance broke with colleagues - including governor Mervyn King - to vote in favour of a rate rise. |
| This raised market expectations of future rate rises, making sterling a more attractive investment. | This raised market expectations of future rate rises, making sterling a more attractive investment. |
| The pound has rallied nearly 20% since reaching a low of 1.02 euros in December 2008. | The pound has rallied nearly 20% since reaching a low of 1.02 euros in December 2008. |
| However, it still remains well below the 1.5 level that it traded around in the years prior to the 2007 credit crunch. | However, it still remains well below the 1.5 level that it traded around in the years prior to the 2007 credit crunch. |
| Market fear | Market fear |
| Sterling's revival is mainly down to the euro's fall from grace, and it is notable that the pound has not enjoyed a similar rally against the US dollar. | Sterling's revival is mainly down to the euro's fall from grace, and it is notable that the pound has not enjoyed a similar rally against the US dollar. |
| Markets are fearful over a European debt crisis that is already engulfing Mediterranean governments, and risks triggering a full-blown banking crisis across the continent. | Markets are fearful over a European debt crisis that is already engulfing Mediterranean governments, and risks triggering a full-blown banking crisis across the continent. |
| The cost of buying protection against a default by the Greek government has hit an all-time high of 10% a year. | The cost of buying protection against a default by the Greek government has hit an all-time high of 10% a year. |
| The euro has fallen 18.8% against the dollar since the crisis began in January. | The euro has fallen 18.8% against the dollar since the crisis began in January. |