//
Bloomberg has revealed sterling gained by 0.3 per cent to 83.90 pence by 12:43 GMT, as the pound was also up versus the dollar on the day at $1.6207, after rising by as much as 0.4 per cent in the morning.
Forex traders seemed keen on sterling as it advanced against the single currency, off the back of positive retail sales figures in the UK.
The Office for National Statistics revealed sales increased by 1.9 per cent last month - the biggest gain since February 2010.
But Chris Huddleston, a trader at Investec Bank, noted it is "inevitable" rates will have to go up in the next two quarters.
He added: "The retail data adds to that argument. The market is moving to price in further gains in sterling."
This comes after the Bank of England met earlier this month and opted to keep the base rate at the current 0.5 per cent level.
Posted by Greg Secker
