Sterling touched a new 20-month high against the euro on Tuesday, driven by diverging interest rate expectations for Britain and the euro zone, though concerns over economic growth and EU ties kept the currency broadly flat on the day. Money markets are pricing in a rate hike by the Bank of England at its Nov. 4 meeting, helping the pound rally around 2% versus the euro and the dollar so far this month. The euro meanwhile is being dogged by signs the European Central Bank (ECB) will be among the last to raise interest rates in the developed world.
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