//
The UK currency fell 0.3 per cent to 82.82 pence per euro and remained largely the same against the dollar at $1.5465, Bloomberg reports.
Sterling also tumbled one per cent to A$1.4951 as speculation over China's plans to stimulate growth encouraged demand for higher-risk assets.
Paul Robson, a London-based senior forex strategist at Royal Bank of Scotland, told the news provider that sterling had been benefitting from the market's desire for stable, low-risk assets.
"If people are a little bit more confident about Europe that probably translates into a weaker pound," he added.
Sterling has grown by 2.2 per cent in recent months as fear over debt contagion in the eurozone continues. However, Reuters noted a slip in its ascent yesterday as investors regained confidence in the common currency.
Posted by Clive Arneil
