Pound Snaps 3-Day Drop Versus Dollar on Bets Economy Will Grow

The pound snapped a three-day decline against the dollar, rising from the lowest level in four weeks, as bets the U.K. economy returned to growth in the last quarter boosted demand British assets.

Sterling was little changed versus the euro as Prime Minister David Cameron said that Britain faces a choice between increasing its productivity or falling behind other countries. The U.K. economy expanded at its fastest pace in five years in the third quarter, the National Institute of Economic and Social Research said yesterday. Gilts fell after Bank of England Governor Mervyn King said yesterday inflation targeting should remain at the heart of monetary policy.