Euro dips to 4-month low vs sterling

TOKYO Jan 19 (Reuters) - The euro slipped to a four-month low against sterling on Tuesday as sterling drew strength after reports that U.S.-based Kraft Foods Inc (KFT.N) and Cadbury Plc CBRY. were arranging a $19 billion deal to create the world's largest confectionery group. [ID:nN04110564]

The euro fell as low as 87.72 pence, the lowest since mid-September, before trading at 87.76 pence, down 0.4 percent on the day. Sterling rose as high as $1.6416, the highest since Dec. 8. (Reporting by Satomi Noguchi)