THE pound has achieved its highest level against a basket of currencies for nearly seven years, boosted by a belief that a rise in UK interest rates might come slightly earlier than had been thought.

Analysts also said that sterling was being supported by the perception that it was a safe-haven currency, amid fears that Greece might exit the eurozone.

The euro fell against the pound, as worries over the position of Greece continued. Thousands of the country's people have taken to the streets of Athens this week to oppose austerity.

Sterling climbed to 93.4 on its trade-weighted index against a basket of currencies. This is the pound's highest level on this measure since July 2008.

At 5pm, the euro was trading around 71.4p, down 0.38p on its Thursday close in London.

The pound was little changed on the session against the US currency, trading around $1.5877 at 5pm.

Sterling has climbed sharply against the dollar recently, from about $1.52 at the start of this month. The dollar has been weighed down this week, with the Federal Reserve not giving the clear signal that some had expected on the likely timing of a rise in US interest rates.

Firmer UK wage growth and slightly less dovish signals from the Bank of England have meanwhile prompted financial markets to price in the first rise in UK base rates from their record low of 0.5 per cent in about nine months' time. They had earlier this week been signalling an expectation that the first increase in UK rates was about a year away.