Sterling traded at 78.85 pence per euro at 9:44 a.m. London time after appreciating as much as 0.2 percent to 78.74 pence, the strongest level since August 2012. Sterling was at $1.7074 after rising to $1.7192 on July 15, the highest since October 2008.
Sterling erased an advance that sent it to the strongest level in 23 months against the euro after the BOE’s minutes of its July policy meeting showed a unanimous vote to keep interest rates unchanged.
GBPUSD was little changed after a five-day drop as the minutes showed some official argued risks were receding that a rate increase would undermine the recovery while others saw little indication of inflationary pressures building. Officials said the outlook for the housing market may be slightly less strong, according to the minutes. UK government bonds were little changed before BOE Governor Mark Carney speaks in Glasgow, Scotland, today.