LONDON, Sept 11 Reuters The pound rose on Monday, taking advantage of a hefty decline in the dollar against the Japanese yen that spilled into other currencies.

Against the yen , the pound fell by almost 1 after Bank of Japan Governor Kazuo Ueda at the weekend said the central bank could end its policy of negative interest rates, which has undermined the yen, when achievement of its 2 inflation target is in sight.

The dollar bore the brunt of the rush into the yen, falling by the most in two months against the Japanese currency.

Sterling was last up 0.4 against the dollar at 1.2521. Against the euro , the pound put in a slightly less robust performance, rising by 0.2 to 85.70 pence.

The pound fell by almost 1 against the dollar last week, as a combination of stronger economic data and weaker investor confidence fuelled a push into the U.S. currency.

It has lost about 5 in value since July39;s 15month peak, but it is still up by over 20 since last September39;s record lows and is up 3.5 so far this year, pitting it against the Swiss franc, the top performer against the dollar in 2023, which is up 3.7.

The Bank of England meets next week to discuss monetary policy. Traders are attaching a 70 chance of a quarterpoint rise in the Bank Rate to 5.50. But they have slashed the chances of another rate rise after that, marking a sharp turnaround from just a week ago, when money markets showed UK rates were expected to peak at closer to 5.7 by March.

Part of sterling39;s…