Pound Drops to Five-Week Low Versus Euro on Debt-Crisis Optimism
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The pound fell to a five-week low against the euro amid speculation European officials are making progress in stemming the region’s debt crisis, damping demand for the relative safety of the U.K. currency.
Sterling headed for a fourth monthly decline versus the 17-nation euro as the German parliament approved the latest rescue package for Greece and a former European Central Bank Executive Board member said Spain may not need a bailout. The pound reversed an advance against the dollar as a report showed U.S. consumer spending unexpectedly stagnated in October in the wake of Hurricane Sandy. Gilts were little changed.