Sterling has risen to its highest level against the euro since the start of the year, boosting hopes that the UK recession may be ending.

Recently released figures by the National Institute of Economic and Social Research showed that the economy grew in April and May. The rise in April was the first monthly increase in over a year.

The pound's rise was also aided by a survey on attitudes to inflation by the Bank of England, which showed inflation expectations for the year rose for the first time since August 2008, to 2.4% in May from 2.1% in February.