The euro has risen to a four-year high versus sterling as broad-based demand allows the single currency to extend recent gains across the board.
Sterling fell as low as 69.68 pence per euro, shedding some 0.15 per cent since late trade yesterday. It was up a third of a per cent on the day against the broadly weaker dollar at $1.5671.
Uncertainty over Britain's potential membership in the euro zone also weighed on market sentiment towards sterling. However, the currency was up against the dollar, indicating price moves were related to euro strength more than sterling weakness.
"The risk reward seems to be pointing in one direction," said Mr David Bloom, currency startegist at HSBC Markets in London. "There is the political story in terms of euro membership - the uncertainty does not bode well for the pound," he said.