Pound Reaches Two-Week High on Bets U.K. Recovery Gathering Pace

The pound reached the strongest level in almost two weeks versus the dollar as reports showing U.K. house prices rose and consumer confidence held at a September 2007 high added to evidence of quicker growth.

Sterling gained in the week versus the U.S. currency as Bank of England Chief Economist Spencer Dale said policy makers will probably face a “healthy” split on when to raise interest rates. U.K. government bonds declined with German bunds as euro-area consumer prices rose more than analysts forecast.