Euro falls to 16-month low vs pound before UK inflation data

LONDON: The euro fell to a 16-month low against the British pound on Tuesday, hurt by widening short-term interest rates in favour of the pound before UK data that is likely to show an uptick in the inflation rate.

In contrast, the European Central Bank is grappling with falling price pressures and is likely to ease monetary policy next month.

The euro fell to 81.25 pence, its lowest since January 2013 and down 0.3 percent on the day. Bids from macro funds and corporate are cited at 81.10-8.15 pence.

Sterling was up 0.2 percent at $1.6845.