The pound rose to its highest rate against the euro since November 2007 on Thursday, climbing to €1.4350 at one point.
The euro fell against both the pound and the dollar as markets assessed potential interest rate moves over the next few months.
The European Central Bank is expected to maintain its loose monetary policy for some time to come.
However, markets are now waiting for rate rises in the UK and US.
It's a very worrying time for many thousands of people in central and eastern Europe, as they helplessly watch the Swiss franc rise against their local currencies and see their mortgage repayments go up and up.
An estimated 566,000 Poles have taken out Swiss franc-denominated loans, that's about 37% of all mortgages here.
By Tuesday, the Swiss franc had risen 21% against the Polish zloty, following the Swiss National Bank's decision to abandon its currency ceiling against the euro last Thursday.
Residents living in India have been banned from acquiring homes overseas, as part of a wave of measures introduced by the Indian government to control outflows of foreign exchange.
The country has been forced to act after its currency, the rupee, fell to record lows against various major foreign currencies, including the US dollar.it is hope that the measure to restrict people buying property abroad will help to strengthen the Indian currency.
Here Andy Scott, premier account manager at foreign currency exchange brokers HiFX, considers the latest money market developments... "Sterling made a brief high just over 1.63 on Friday morning, marginally above the high for 2012, which we saw back in April, despite the release of record Government borrowing figures during the...
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