Sterling hits six-month high against euro

Sterling has reached its highest level against the euro so far this year rising to €1

Sterling has reached its highest level against the euro so far this year rising to €1.173 on hopes that the UK may be close to exiting recession.

At 10.20am the euro was trading at 85 pence after the National Institute of Economic and Social Research (the equivalent to Ireland’s Esri) said it believed the British economy grew in April and May.

UK industrial output data figures showing the first monthly rise in 14 months also boosted sentiment.

Sterling was also stronger against the dollar, rising 0.2 per cent to $1.6383, having earlier climbed as high as $1.6438.

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A strengthening of sterling is good news for many Irish exporters as it makes their products more competitive.