THE pound hit its highest level against the euro for three-and-a-half years yesterday, as traders fretted over the outlook for Spain and Italy amid the single currency zone debt crisis.
Sterling also rose against the dollar, which was weighed down by news of a third straight monthly fall in US retail sales in June.
John Higgins, senior markets economist at Capital Economics, said: "The last time US retail sales fell for three months on the trot was late 2008. And we know what happened then.
We moderate all comments on HeraldScotland on either a pre-moderated or post-moderated basis. If you're a relatively new user then your comments will be reviewed before publication and if we know you well then your comments will be subject to moderation only if other users or the moderators believe you've broken the rules, which are available here.
Moderation is undertaken full-time 9am-6pm on weekdays, and on a part-time basis outwith those hours. Please be patient if your posts are not approved instantly.
