Sterling hits highest since Dec vs euro; dips vs dlr

* Sterling hits highest since Dec vs euro, 7-mth TWI high

* Euro weakens ahead of ECB 1-yr refi op on Wednesday

* Pound falls vs dollar; caution ahead of FOMC decision

* UK Rightmove survey shows house prices fall in June

By Jessica Mortimer

LONDON, June 22 (Reuters) - Sterling extended gains on Monday, hitting its strongest since early December against the euro, which came under broad pressure ahead of the European Central Bank's first one-year refinancing operation.

Gains against the euro helped sterling to a seven-month high against a basket of currencies as investors continued to feel that much of the bad news on the UK economy is already priced in to its currency.

The pound fell against the dollar, however, as renewed concerns about global growth and jitters before a U.S. Federal Reserve policy meeting benefited the U.S. currency and curtailed demand for currencies perceived as higher risk.