Sterling jumps as UK-EU inch closer to Brexit financial deal

FILE PHOTO: A British Pound Sterling note is seen in this June 22, 2017 illustration photo. REUTERS/Thomas White/Illustration/File Photo

LONDON (Reuters) - Sterling jumped against a trade-weighted basket of its rivals on Wednesday after European Union sources said Britain has offered to pay much of what the EU was demanding to settle a Brexit “divorce bill.”

In early prints on Wednesday, the trade-weighted sterling index spiked 1.4 percent to 78.3, its highest since Nov. 1 and on course for the biggest daily rise since April.

An agreement to pay as much as 50 billion euros according to British newspapers potentially brings the two sides close to agreement on a key obstacle to opening talks on a future free trade pact.

Reporting by Saikat Chatterjee; Editing by Jamie McGeever