SINGAPORE, Nov 27 Reuters Sterling rose to an over twomonth high against a weakening dollar on Monday, though some riskaversion capped losses on the greenback as traders eyed fresh economic cues in the week ahead to determine the future path of policy rates.

A postponed OPEC meeting, data from the Federal Reserve39;s favoured measure of inflation alongside inflation readings in the euro zone and Australia fill this week39;s calendar, which will also see a rate decision from the Reserve Bank of New Zealand and Chinese PMI data.

The British pound rose to a more than twomonth high of 1.2620, extending its gains from last week following data showing that British companies unexpectedly reported a marginal return to growth in November after three months of contraction.

That indicates the resilience of the UK economy despite the very aggressive monetary policy tightening from the Bank of England, said Carol Kong, a currency strategist at Commonwealth Bank of Australia. But we still expect the UK economy to weaken and experience a shortlived recession.

The pound was on track for a roughly 3.8 gain for the month, its largest monthly gain in a year.

Elsewhere, the dollar fell 0.32 to 148.97 yen , while the euro gained 0.2 to 1.0952.

The dollar index slipped 0.12 to 103.31 and was headed for a monthly loss of more than 3, its worst performance in a year.

Traders, returning from the Thanksgiving lull late last week, continued to eye a peak in U.S. rates and turned their…