Wednesday saw the value of the English pound increase to its highest value since September 2010 against the common currency of the European Union amid widening concerns about the sovereign debt crisis' worsening tendencies, according to Bloomberg.
The increase of expenses on Spanish bonds to insure against default helped the currency notch climbs for the first time in three trading sessions when held against the euro. When the pound advanced 0.9 percent after 4 p.m. in the UK on Wednesday, the moneypiece touched 82.65 pence per euro, representing the largest value since September 2010.
"Maybe the UK is approaching a consensus (for a recession) but it's not there yet," currency strategist Geoffrey Yu with UBS told Reuters, also noting his firm is not positive on sterling in the long term. "And there's no break-up risk, so people are more willing to allocate funding from a passive perspective at the start of the year."
When compared with nine counterpart currencies, sterling has gained 3.2 percent during the past six months, Bloomberg reports. The U.S. dollar and the Japanese yen have performed more strongly.
With the UK economy likely to encounter struggles this year, the pound is forecast to run into rough waters, according to Reuters.
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