By Agnes Lovasz Oct. 8 (Bloomberg) -- The pound rose against the dollar and gilts pared gains after central banks around the world, including the Bank of England, cut interest rates. The pound increased to $1.7528 as of 12:17 p.m. in London, from $1.7455 yesterday. The currency was little changed at 77.93 pence versus the euro, from 77.87 pence. Against the yen, the pound fell to 175.36, from 177.13. Britain's central bank reduced its key rate half a percentage point to 4.5 percent. The yield on the 10-year gilt fell 1 basis point to 4.23 percent. Two-year yields dropped 19 basis points to 3.41 percent. Bond yields move inversely to prices. The Federal Reserve and European Central Bank also lowered rates today. To contact the reporter on this story: Agnes Lovasz in London at alovasz@bloomberg.net

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