Sterling fell to a 15-year low against the dollar yesterday, pulling the euro down in its wake as investors speculated that an expected election landslide for Labour will lead to Britain entering the euro-zone.

The euro remained mired below 85 cents, trading at 0.8482 dollars at 9 p.m. London time, compared to 0.8541 dollars in New York a day earlier. Sterling was at 1.3925 dollars versus 1.4134 dollars in New York on Tuesday.

The euro was also undermined by figures released on Tuesday showing a fall in European confidence levels in May for a fifth straight month.