The pound strengthened against the dollar as a report showed house prices in the U.K. unexpectedly increased in March. Britain’s currency was little changed versus the euro. The average cost of a home increased 0.5 percent from February to 164,751 pounds ($264,900), Nationwide Building Society said today. Economists predicted no change in prices, according to a Bloomberg News survey. GfK NOP Ltd.’s March index of sentiment stayed near the lowest since 2009 at minus 28 last month, a separate report showed. The pound rose 0.2 percent to $1.6103 as of 7:42 a.m. in London. Sterling traded at 87.89 pence per euro, from 87.90 pence yesterday in New York. It was little changed at 133.14 yen from 133.22. The U.K.’s currency has gained 3.2 percent against the dollar this year, and weakened 2.6 percent versus the euro on speculation the Bank of England will raise interest rates before the Federal Reserve and after the European Central Bank. Bank of England policy maker David Miles speaks in London at 11.15 a.m. To contact the reporter on this story: Lucy Meakin in London at lmeakin1@bloomberg.net. To contact the editor responsible for this story: Daniel Tilles at dtilles@bloomberg.net.

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