Pound Approaches 9-Month High Versus Dollar on Construction Data

The pound approached the strongest level since January versus the dollar as an industry report showed construction expanded for a fifth month in September, adding to evidence that the U.K. economy is expanding.

Britain’s currency advanced against most of its 16 major counterparts after the data showed homebuilding posted its strongest growth for a decade. Sterling has climbed 7.8 percent in the past six months, making it the best performer among 10 developed-nation currencies tracked by Bloomberg Correlation-Weighted Indexes, as an improving outlook spurred bets the Bank of England will increase borrowing costs sooner than it has predicted. Gilts were little changed.