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At 08:50 GMT, the pound was up to 86.75c against its European counterpart, as concerns over sovereign risk in countries such as Greece caused the European currency to suffer, Reuters reports.
However, sterling dipped to $1.5655 against the dollar, with the 0.1 per cent fall meaning it is now close to last week's recent low of $1.5535.
Lauren Rosborough of Westpac told the news agency that the bank expects the euro to fall to 85.50c against the pound over the medium term.
She added that worries about sovereign risk will "continue to weigh on euro/sterling".
The euro has continued the slide it experienced on Friday, when investors moved away from the currency due to the lack of details available regarding a European Union deal that will provide financial assistance to Greece.
Posted by Greg Secker
