Sterling hits six-month high against the euro in late rally

Sterling rose on Thursday to its highest in six months against the euro and climbed as much as 0.4% versus the dollar in a late rally that puzzled analysts.

The pound was last up 0.2% at $1.2884. Versus the euro it was last at 85.54 pence after hitting 85.45 pence late in the trading day, it’s strongest since May 7.

The currency was unmoved by weaker-than-expected British retail sales, which rose 3.1% year-on-year in October. Economists polled by Reuters were expecting a 3.7% increase.