The pound has risen to its highest level against the Euro since November 2008 as markets show concern ahead of a deadline this week for European banks to repay loans taken out a year ago at low interest rates.
The European Central Bank will offer funds on Wednesday to banks looking to repay loans later this week. The euro has been under pressure since earlier this year when questions were asked about high government borrowing and markets are tense going into the end of the long term refinancing programme.
The pound was also boosted by comments from the Bank of England’s Monetary Policy Committee member Andrew Sentance who made noises on Monday about raising UK interest rates to counter inflation.
The pound stood at 1.2327 against the euro this morning, getting close to the pre-crisis average.
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