Pound Falls Versus Euro on Bets Cyprus Contagion to Be Contained
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The pound fell from a five-week high against the euro as the bond markets of Europe’s most indebted nations rallied amid optimism Cyprus is moving closer to reaching agreement on an international bailout.
Sterling pared a second weekly gain versus the 17-nation currency after Averof Neofytou, deputy president of Cyprus’s ruling Disy party, said he believes lawmakers will reach a deal in the next few hours. The Cypriot parliament is seeking an agreement to unlock rescue funds to avert a financial collapse after Finance Minister Michael Sarris failed to gain support from Russia. U.K. government bonds gained for a second week.