LONDON, Feb 11 (Reuters) - Sterling pared losses and UK stocks fell on Monday after data showed that UK producer prices in January rose much faster than economists had expected to their highest in 16 years.

Sterling jumped 40 ticks against the dollar to $1.9475 <GBP=>, erasing all its earlier losses, while the euro pared gains to trade at 74.80 pence from around 74.95 pence <EURGBP=> before the data.

Britain's FTSE 100 <.FTSE> fell further, last trading down 0.45 percent.

For more on the PPI data, click on [ID:nONS003341].

((Reporting by Jamie McGeever; Reuters Messaging: [email protected]; +44 207 542 8510))

Keywords: MARKETS STERLING