Sterling rises to 6-week high

LONDON: Sterling rose to a 6-week high against the euro on Wednesday, extending gains after a hawkish inflation report from the Bank of England drove investors to unwind long positions in the euro and buy the British pound.

The euro was down more than 1 percent at 87.06 pence, falling to its lowest since March 24. The Quarterly Inflation Report led money markets to bring forward expectations of a rate rise in the UK to December from January.