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According to Reuters, the single currency dropped by more than half a per cent versus sterling at 86.81 pence as losses crashed through the 87 pence barrier.
The news provider noted that the pound was helped out by improved consumer confidence in Britain after a survey showed that people were not as nervous about the state of their finances in October.
But negative news for sterling came against the dollar as it slipped slightly after experiencing its highest level in over a week yesterday at $1.5979, despite being "close to flat" in the morning.
Ankita Dudani, G-10 currency strategist at RBS, said: "It has been a good week for sterling and it is doing well against the euro, but for cable the moves are mainly dollar-driven with US news overshadowing anything sterling specific."
Posted by Greg Secker
