Pound Advances to Two-Month High Versus Euro on Cyprus Concern
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The pound rose to the strongest level in two months against the euro amid concern financial turmoil in Cyprus will lead to a worsening of Europe’s debt crisis, underpinning demand for the safety of the U.K. currency.
Sterling advanced versus all except one of its 16 major counterparts as a government report showed Britain’s services industries expanded in January. The Central Bank of Cyprus is imposing capital controls including a 300-euro ($383) daily limit on withdrawals and restrictions on transfers to accounts outside the country to halt a capital flight. U.K. government bonds were little changed.