Pound Rises Versus Euro Even as Construction Contracts

The pound appreciated from the weakest level in 15 months against the euro as political turmoil pressured Spanish and Italian government bonds and boosted the relative appeal of Britain’s currency.

Sterling rose versus most of its 16 major counterparts after sliding the most in more than two years against the 17-nation euro on Feb. 1. Ten-year Spanish yields climbed to the most since mid-December as Prime Minister Mariano Rajoy faced opposition calls to resign over allegations he’d received illegal payments. Italy’s debt slid as Silvio Berlusconi narrowed the front-runner’s lead before elections this month. Ten-year gilt yields rose to a nine-month high.