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Forex traders have stayed away from the single currency as it decreased by 0.3 per cent versus sterling to 84.98 pence, Reuters reports.
According to the news provider, the drop was due to rumours eased that the European Central Bank might increase rates, as well as worries about the eurozone debt crisis.
This comes before the Bank of England (BoE) announces any possible changes to the interest rate at midday, but the financial body is widely expected to leave the cash level - which is currently at a record low of 0.5 per cent - unchanged.
Earlier this week, the euro increased by 0.5 per cent against the pound after a hike in Britain's tax levy against banks was announced, although Reuters pointed out traders limited their moves as they waited for the BoE's Monetary Policy Committee to decide on the interest rate today.
Posted by Chris Weaver
