LONDON, Sept 23 - Sterling stayed near the previous session's 2-1/2 month high against the dollar on Tuesday, tracking the euro higher in the absence of major economic data in Britain. All eyes were on movements in dollar/yen which has been knocked down to near three-year lows after the Group of Seven industrial nations called for more exchange rate flexibility. The G7 statement was interpreted as being aimed at countries like Japan, where authorities have been intervening to curb export-damaging yen strength. The fall in dollar/yen consequently pushed the euro higher against the greenback. "Nothing specific is going on in sterling. It's pretty much tracking euro/dollar," said David Mann, currency strategist at Standard Chartered.
By 0748 GMT sterling was firmer against the dollar at $1.6517 having reached a high of $1.6547 on Monday. Against the euro it held steady at 69.45 pence . Against a broadly stronger yen sterling hit a 2-1/2 week low of 183.36 yen .//