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Sterling managed to hit a seven-week high against the single currency, which experienced difficulties due to debt problems in Ireland, Reuters reports.
At one stage the euro was down to 84.50 pence, but it managed to improve on its losses to reach 84.98 pence.
According to Paul Robson, strategist at RBS, sterling could set to become a main focus point due to the relationship between the UK and eurozone.
He added: "Fifty per cent of our exports go to Europe, so if periphery worries start to impact growth expectations in Europe, that's when sterling will start to weaken again."
This news comes after the pound extended its gains against the euro yesterday afternoon, due to European periphery debt concerns, as the single currency shed 0.7 per cent, the news provider reported.
Posted by Greg Secker
