Friday, 14 February 2014

Pound Rises for Fourth Day as Construction Adds to Growth...



he U.K. currency extended its biggest weekly advance versus the greenback since June and climbed to the highest level since May 2011. Sterling has gained at least 0.4 percent against all its 16 major counterparts this week as investors bet Bank of England Governor Mark Carney will have to increase interest rates as the economy improves. U.K. government bonds declined. “We are constructive on the U.K. economy,” said Valentin Marinov, head of European Group-of-10 currency strategy at Citigroup Inc. in London. “It’s an environment that will support demand for U.K. assets and therefore sterling.”

The pound gained 0.3 percent to $1.6709 at 1:51 p.m. London time, having rallied 1.8 percent this week, the most since the period ended June 7. It advanced to $1.6724, the highest level since May 2, 2011. The U.K. currency appreciated 0.2 percent to 81.95 pence per euro.

Sterling has jumped 12 percent in the past year, the best performer among 10 developed-nation currencies tracked by Bloomberg Correlation-Weighted Indexes, amid speculation an improving economy will bring forward interest-rate increases. The euro rose 5.8 percent and the dollar gained 2.9 percent.

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