Sterling rises on property strength
Sterling rose to a 15 month high against the euro on Monday following a series of strong property indicators.
The pound was up 0.5 per cent on the euro, the highest point since June
2005 at 0.668p and was up 0.2 per cent on the dollar, at $1.902, in mid-afternoon foreign exchange trading in New York.
Confidence in sterling was strong on the back of a Hometrack report showing that October witnessed the fastest house price rises in two years.
This was bolstered by Bank of England figures showing that September mortgage approvals hit their highest level for two and a half years.
The figures showed that the UK property market had ridden through August's interest rate rise, said analysts, and paved the way for another quarter point rise next month.
"Everything seems to be leaning towards a rate hike next week and I can't see anything between now and then that will change that," Adrian Hughes, currency strategist at Societe Generale, told the Financial Times.