* Sterling at 6-mth high vs euro, 2-mth low vs dollar
* Pound rises as euro suffers broadly on Greek concerns
* Euro selling vs dlr pressures Cable, UK QE prospect also stings
By Naomi Tajitsu
LONDON, Sept 12 (Reuters) - Sterling hit a six-month high against the euro on Monday as the single currency took a broad hit on speculation that Greece may soon be forced to default on its debts.
The euro stumbled to 85.31 pence, its lowest since early March, with traders citing selling by UK exporters as driving the single currency lower. Its losses have mounted after breaking below key technical support, opening the door to more weakness.
The pound , however, plumbed a two-month low of $1.5793 as the escalating concern about a number of euro zone members prompted safe-haven demand for dollars, which rallied across the board.
Also keeping the pound under selling pressure versus the dollar, yen and other currencies was the prospect that the Bank of England may consider the possibility of injecting more stimulus to the economy as it struggles to recover.
Traders anticipated sterling would continue to track moves in the euro, with Greece's struggle to gain the next part of its international bailout just the latest round of bad news in a two-year sovereign debt crisis.
The country's deputy finance minister on Monday said Greece has cash to operate until next month, highlighting its need for the bailout funds.
At the same time, reports that France's top banks are bracing for a likely credit downgrade underlined the negative impact the crisis is having on the region's banking sector.
"We have a few bids as we go lower (in Cable) but not enough to stop it if the euro keeps being sold," said a trader in London.
"At the end of the day euro/dollar is lower and euro/sterling is lower. This is a euro move."
The euro pared losses to trade 0.3 percent lower on the day at 85.64 pence.
Late last week it made a decisive break below technical support at 86.93 pence, its 200-day moving average, signalling the single currency could deepen its losses.
Sterling fell as low as $1.5793 in early London trade, its lowest since mid-July, before an Asian central bank stepped into buy the currency on its break below $1.5800.
A break below $1.5781 would take the pound to its weakest since late January.
The pound found some relief last week after the Bank of England left monetary policy unchanged, hurting some investors who had bet on the possibility it could add to its asset-purchasing plan.
Such a move would be negative for the pound as it would flood the system with the currency, sapping demand.
The UK economy's struggle to recover while the government slashes spending has raised expectations that the central bank may soon have to take action, including quantitative easing, to prop up growth.
"Sterling is unlikely to be able to make much if any headway against the USD over coming sessions as expectations of further UK quantitative easing may simply have been pushed back to the November meeting," analysts at Credit Agricole CIB said in a note.
Weak readings of the UK jobless sector and retail sales due this week may add fuel to that argument, while inflation figures are expected to show price pressures are staying stubbornly high.
High inflation is complicating the monetary picture for the BoE, as it makes it difficult for policymakers to justify monetary easing when it must also tame price pressures.
