Pound Rises Against Euro on Greece Concern; U.K. Gilts Decline
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The pound rose for the first time in four days against the euro amid speculation an agreement among European finance ministers to ease the terms of emergency aid for Greece will fail to stem the region’s debt crisis.
Sterling strengthened versus most of its 16 major counterparts after a report confirmed Britain’s economy exited a double-dip recession in the third quarter, underpinning demand for the U.K. currency. European finance ministers meeting in Brussels cut the rates on bailout loans for Greece, suspended interest payments for a decade, gave the country more time to repay and engineered a bond buyback. U.K. gilts declined.