The British pound plunged on Monday as some traders placed their money back into the euro on hopes Greece will secure a deal with bailout lenders.
Sterling slid to $1.5820, reaching a seven-month peak of $1.5930. Against the euro, the pound stood at 72.05 British pence.
Greek officials echoed optimism over the latest proposals following a meeting with eurozone finance ministers.
The likelihood of an agreement on Greece has somewhat sapped of the safety bid out of the currency… “it does seem like Greece will continue to be the major driver,” said Tobias Davis, Corporate Hedging Manager at Western Union.
Investors are now contemplating on the speculation the Bank of England will begin increasing interest rates in nine months following last week’s robust UK data.
The material has been provided by InstaForex Company – www.instaforex.com