Sterling nears 2-year high vs euro on rate rise bets

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Reuters UK

LONDON (Reuters) – The pound approached two-year highs against the euro on Tuesday and slipped only modestly against a strengthening dollar, supported by a continued rise in gilt yields on growing expectation the Bank of England will raise interest rates next month. Two-year and 10-year British government borrowing costs rose to two-month highs, up six basis points on the day after Prime Minister Boris Johnson said new measures were not needed to fight the Omicron coronavirus variant and also tracking Monday’s rise in U.S. yields. Meanwhile, money markets are pricing in two 15 basis-point rate…

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