Pound Pares Monthly Drop Versus Euro on Dutch Deficit Forecast

The pound advanced against the euro, paring a seventh monthly decline, as the Netherlands said it will breach European Union deficit limits, boosting demand for the U.K. currency as an alternative to euro-area assets.

Sterling pared its steepest monthly decline since May versus the dollar as the Dutch announcement signaled region’s nations are struggling to grow fast enough to cut their debts. The U.K. currency has fallen versus all but one of its 16 major peers in February after gross domestic product shrank last quarter and Moody’s Investors Service cut the nation’s credit rating.