Sterling rises versus euro, reaches fresh 15-month high

8/10/2025 18:12

Sterling slipped against a strong dollar but rose versus the euro and the yen on Wednesday, while concerns over the British economy and next month's budget kept investors on edge.



The common currency and the yen were on track for a third straight day of losses against the dollar on Wednesday, pressured by political turmoil in France and expectations of increased fiscal spending in Japan.



On the British economic front, analysts expect modest growth for the rest of the year, while inflation is seen rising to 4% — double the Bank of England’s target — after data last week showed the economy lost momentum following a strong start to 2025.



The British currency showed a quite muted reaction to recent data, but investors feared that potential tax hikes to meet fiscal rules in next month's budget could have a negative impact on the pound.



Sterling was down 0.1% against the dollar at $1.3409.