Euro rises to four-month high versus sterling

LONDON: The euro rose to a four month high versus sterling on Tuesday after UK inflation data and a Bank of England policymaker's comments weighed on the British pound.

The euro, was up 0.5 percent at 86.950 pence, its highest since mid-March. Traders cited an options barrier at 87.00 pence.

The pound fell after UK inflation data rose less than expected keeping alive chances of more stimulus from the BoE. Sterling also came under pressure after BoE policymaker Paul Fisher said current UK yield curve showed no rate hike priced in until mid 2015.