Published by Jamie JemmesonSterling rose in foreign exchange trading yesterday (August 18th) versus the euro, as investors believed the eurozone fared less well than the UK economy.According to Reuters, the single currency traded at 86.64 pence versus the pound, a 0.4 per cent tumble.Meanwhile, versus the dollar the pound was at $1.6447, a 0.6 per cent decline.Morgan Stanley's head of European FX strategy Ian Stannard said: "Global investors see the UK as relatively stable from a political and ratings perspective against Europe and the US."This view was echoed by Armstrong Investment Management's fund manager Patrick Armstrong who suggested investors have chosen sterling because it "does not have the troubles of the eurozone".Foreign exchange markets could also be impacted by the rate of inflation, which the Office for National Statistics recently revealed had moved up to 4.4 per cent from the 4.2 per cent level seen in June.For more information on foreign exchange treasury services and risk management, visit our Corporate FX site