Riding high on the back of the mounting concern that Ireland's bailout will fail to stem the euro region's sovereign debt crisis, the pound has been trading on the level which is very closet o its nine-month high against the Euro.

It is to be mentioned here that the investors have been favouring the pound against the Euro and it is in a situation where the Spanish and Portuguese bonds declined on speculation the nations will have to follow Ireland and Greece in asking for European Union assistance.

It may be noted here that the U. K. Chancellor of the Exchequer George Osborne has recently lend a helping hand in the form of a 7 billion-pound ($11 billion) loan saying that it will strengthen the ties between the two countries. Paul Robson, a senior foreign exchange strategist at Royal Bank of Scotland Group Plc in London is of a view that the pound will continue to take support from the problems in the Euro area for the short-run and the investors are likely to see more declines in the euro-sterling area.