Sterling hits 2-month high vs euro on UK price data

Sterling hit a two-month high against the euro on Tuesday after UK inflation data added to the market's view that the Bank of England may be nearing the end of its quantitative easing programme.

British consumer price inflation rose 0.2 percent on the month in October, more than forecasts for a 0.1 percent rise. Year-on-year CPI stood at 1.5 percent, in line with expectations and rising from a five-year low of 1.1 percent in September. [ID:nLH23495]

The euro EURGBP=D4 fell half a percent on the day to 88.49 pence, its weakest since mid-September.

Sterling GBP=D4 rose to the day's high of $1.6873, nearing $1.6879 hit on Monday, its strongest since early August.

Inflation