Pound Approaches One-Year High on Optimism Economy Is Improving
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The pound rose toward a one-year high against the dollar after an industry report showed U.K mortgage approvals increased last month, adding to signs the nation’s economy is improving.
Sterling also gained versus the yen as draft guidelines for Europe’s permanent rescue fund, the European Stability Mechanism, showed it will invest in a broad range of assets, reducing the chance that contagion will hurt the U.K. economy. A U.K. report last week showed the budget deficit was smaller than economists forecast. Gilts were little changed.