LONDON Sterling hit its highest against the euro since its October 7 "flash crash" in a rollercoaster session on Tuesday, buffeted by mixed interpretations of a rise in inflation and suggestions parliament would have to ratify Britain's deal to leave the European Union.
A UK government lawyer said parliament would "very likely" have to ratify an eventual agreement with the EU when the country leaves the bloc, sending the pound to as high as $1.2300 and 89.60 pence per euro in morning trade in London. EURGBP=D4
It pulled back again as James Eadie, who is representing the government in a High Court challenge over who has the right to trigger divorce talks, said the EU and Britain could also agree in the deal that parliament would not have to be consulted.
"We have just jumped on that headline but it does not look as clear as people initially thought," said a strategist with one international bank in London.
(Reporting by Patrick Graham; Editing by Jemima Kelly)