Economics
Pound Advances Against Euro on Italy Speculation; Gilts Decline
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The pound strengthened against the euro amid concern Italy’s struggle to form a government may drag on the 17-nation currency bloc’s economic recovery, boosting demand for U.K. assets.
Sterling rose against all but two of its 16 major peers after a report showed U.K. house prices increased for the first time in nine months in February. Britain’s currency advanced from close to a 2 1/2-year low against the dollar even as an industry report showed U.K. construction output shrank. The 10-year gilt yield fell to a two-month low after the Bank of England said net lending to consumers and companies dropped 2.43 billion pounds ($3.66 billion) in the fourth quarter.