Pound Gains Most in Two Weeks Versus Euro as King Sees Recovery
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The pound strengthened the most in two weeks against the euro after the Bank of England upgraded its estimate of the U.K. economy and Governor Mervyn King said a recovery was now “in sight.”
Sterling advanced against all except one of its 16 major counterparts after the central bank’s quarterly Inflation Report predicted growth may quicken to 0.5 percent this quarter from 0.3 percent during the previous three months. The pound also rallied after a report showed U.K. jobless claims declined in April even as unemployment increased. Government bonds fell, pushing yields to the highest level in two months.