Sterling hits 2-week high on UK election day

London

THE euro steadied near six-month highs on Thursday ahead of a European Central Bank policy announcement while sterling set a two-week high as markets priced in a victory for Britain's Conservative Party in national elections.

The euro has risen 10 per cent against the dollar in the past five months, partly due to the greenback's weakness but also on the view that rising inflation would prompt the ECB to raise interest rates in early 2018.