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Pound hits highest euro rate since 2007 | |
(about 2 hours later) | |
(Morning): The pound has risen to its highest rate against the euro since November 2007, with sterling up 0.4% against the euro to €1.4339. | |
The euro fell against both the pound and the dollar as markets assessed potential interest rate moves over the next few months. | |
The European Central Bank is expected to maintain its loose monetary policy for some time to come. | |
However, markets are now waiting for rate rises in the UK and US. | |
On Tuesday, Bank of England governor Mark Carney said that the point at which UK interest rates may begin to rise was "moving closer". | |
And on Wednesday, US Federal Reserve chair Janet Yellen reiterated her view that US interest rates are likely to rise before the end of the year. | |
The euro fell 0.4% against the dollar on Thursday to $1.0904. | |
On the stock market, the benchmark FTSE 100 index was 36.76 points higher at 6,790.51. | |
Dixons Carphone shares gave up early gains to stand 0.3% lower, despite the electrical goods and mobile phone retailer reporting a 21% rise in underlying full year profits. | |
The firm, created through a merger last year, posted profits of £381m after what it called a "terrific year". | The firm, created through a merger last year, posted profits of £381m after what it called a "terrific year". |
Shares in Sports Direct fell 1.4% after it reported a 21% rise in full-year underlying pre-tax profits to £300m. | |
The company said it would cut its core earnings target for 2016 to £420m from £480m after planned acquisitions in 2015 failed to take place. | The company said it would cut its core earnings target for 2016 to £420m from £480m after planned acquisitions in 2015 failed to take place. |