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According to Reuters, the single currency was down 0.3 per cent at 85.17 pence, leaving sterling to rise to a six-week high of 81.3 against a basket of currencies.
The news provider noted that sterling extended its gains following yesterday's Bank of England (BoE) report which hinted that near-term quantitative easing (QE) would be unlikely.
Geraldine Concagh, economist at AIB Group Treasury in Dublin, said: "Although the BoE left the door open to more QE, all the indications are that there will be nothing in the near term."
He pointed out that this announcement has led to a boost for sterling.
This comes after the pound was up by 0.6 per cent against the dollar yesterday following the BoE's report stated that inflation would rise about its target next year.
Posted by Greg Secker
