LONDON, Feb 10 - Sterling hit an 11-year high against the dollar for the second day running on Tuesday and held its ground versus the surging euro, as investors snapped up higher-yielding currencies and sold the greenback. UK economic data will be in focus later in the session with December trade figures due at 0930 GMT and expected to show Britain's shortfall at 4.3 billion pounds ($8 billion) compared with 4.4 billion a month before. The November figures had shown an unexpected surge.
"The market likes sterling as a good vehicle to sell the dollar," said Paul Mackel, currency strategist at ABN Amro in London. "The trade data might dampen sterling sentiment but on balance investors want to buy sterling against the dollar." By 0855 GMT sterling had hit its highest level on the dollar in 11 years at $1.8688 , gaining from the previous session's closing level around $1.8600. Against the euro, sterling was steady on the day at 68.37 pence per euro . The Australian dollar, another currency where a comparatively sizeable yield makes it attractive versus the U.S. currency, hit a 6-1/2 year high on the greenback at US$0.7817 .//