Pound Rises to 3-Week High Versus Dollar as U.K. Services Expand

The pound rose to a three-week high against the dollar as an industry report showed U.K. services output expanded more than analysts forecast, adding to signs the economy is gathering momentum.

Sterling climbed to the strongest level in two weeks versus the euro as the survey of purchasing managers supported the case for the Bank of England to refrain from further monetary stimulus that tends to devalue a currency. The central bank started a two-day meeting today amid speculation policy makers will leave the asset-purchase target unchanged. U.K. gilts rose, with the 10-year yield falling from near a 12-week high.