The pound steadied on Wednesday, pulling back from a record low against the euro and a six-and-a-half year trough against the dollar amid thin trading as a dramatic year on the currency markets drew to an end.

The pound rose 0.9 per cent to £0.9670 against the euro, climbed 0.9 per cent to $1.4535 against the dollar and gained 0.9 per cent to Y131.06 against the yen.