Pound Jumps on Investment Signal as Japanese Insurer Buys Amlin

  • MS&AD Insurance Group Holdings to buy Amlin for $5.3 billion
  • Extends recovery versus euro with policy divergence intact
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The pound advanced versus the dollar, posting the biggest two-day gain in almost three months, amid speculation that a Japanese company’s purchase of a U.K. insurer signals more inflows into Britain’s economy.

Sterling also jumped for a second day against the yen as MS&AD Insurance Group Holdings Inc. agreed to buy Lloyd’s of London insurer Amlin Plc for about 3.47 billion pounds ($5.3 billion). Sterling jumped versus most of its 16 major peers, climbing to its strongest level against the dollar in more than a week.