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According to Bloomberg, the pound moved to its strongest intraday level since February 7th as it made the gains against the single currency, which stood at to 84.03 pence this morning, but rose to 84.09 pence by 12:05 GMT.
Forex traders mainly stayed away from the euro as they wait for reports to come out this week that might show inflation is gathering pace.
If so, it will put further pressure on the Bank of England's (BoE) Monetary Policy Committee (MPC) to up the interest rate from its current record low of 0.5 per cent.
Last week, the BoE announced it was holding the cash level at its current rate.
Business secretary Vince Cable said in a Bloomberg TV interview, which aired today, that he is in agreement with the MPC that increasing the interest rate would be "potentially very difficult" considering the UK's current economic climate.
Posted by Chris Weaver
