The pound sterling is at its highest level for nearly two years against the euro. The British currency is supported by the prospect of higher rates and renewed investor appetite for risk.

The pound rose on Thursday against the euro to its highest level in 23 months. The British currency rose to 1.2040 euros for one pound, for the first time since February 19, 2020. On Wednesday, the National Statistics Office (ONS) reported inflation at its highest for 30 years , to 5.4% in December, in the United Kingdom. The euro also fell against the dollar, which still benefits from the prospect of multiple rate hikes from the Fed this year.

Elsewhere in the foreign exchange market, the South African rand hit 15.0992 rand to the dollar on Thursday, its highest level since November 10, 2021, days before the identification of the Omicron variant of the coronavirus, which first hit South Africa.