Sterling fluctuated against the yen on Thursday but averaged a multi-year high as it maintained its strength against the Japanese currency.

Trading reached a high point of 246.49 and a low of 245.99 late on Thursday as the yen made back ground against sterling in the wake of UK economic data that showed a decline in motor industry manufacturing.

However, on Friday morning the yen hit new multi-year lows against the majors during Tokyo trading.

It fell sharply against the dollar, dropping to 123.95 from an opening position of 123.65.

Likewise, gains made on the pound were lost as the yen weakened from 246.36 to246.90, before reaching 247.3 at mid-morning.

The pound traded between a low of 0.6725 and a high of 0.6712 against the euro on late Thursday, averaging four month high.

Euro trading will be affected by the release of German IFO business climate data, which is due mid-Friday.