Euro savings boost as sterling jumps
Those hoping to invest money in euro savings were boosted yesterday as the value of the pound rose to its highest against the currency in a month.
One euro was worth just over 85 pence at the peak of yesterday’s trading, which also saw Sterling reach £1.65 as positive news emerged about the UK housing market.
This was provided by Nationwide, which produced house price figures for July indicating a 1.3 per cent increase during the month, the third successive positive monthly figure.
Currency research director at trading site Forex.com Jane Foley told Reuters: "Sterling has definitely benefitted from the data".
News of the jump comes days after a poll by Reuters found that all 75 economists questioned expected the August meeting of the governing council of the European Central Bank to agree to hold the main refinancing operations rate at one per cent when it meets next week.
This rate has been cut several times in recent months, having been as high as 3.75 per cent before the council’s November 2008 meeting.
Written by Jamie Musk