BLBG:Pound Strengthens Against Euro as U.K. House Prices Advance
The pound gained for a second day against the euro as a report showed U.K. house prices jumped in September, boosted by investors seeking safer assets amid the financial-market turmoil.
Sterling strengthened versus most of its 16 major peers tracked by Bloomberg as a Rightmove Plc report showed U.K. house values gained 0.7 percent this month, after a 2.1 percent decline in August. The pound fell against the dollar and the yen as European officials failed to offer a plan to halt the region’s debt crisis and as Greece struggles to avoid default, spurring demand for safety. Gilts rose.
The pound was 0.5 percent stronger at 87 pence per euro as of 8:36 a.m. in London. The pair reached 86.84 pence earlier, the most since Sept. 14.
Sterling dropped 0.3 percent to $1.5749, after falling to $1.5684, the least since Jan. 12.
The pound has slid 6.5 percent in the past 12 months, according to Bloomberg Correlation-Weighted Currency Indexes.
The 10-year gilt yield dropped six basis points to 2.43 percent, while the two-year yield slipped two basis points to 0.51 percent.
To contact the reporter on this story: Keith Jenkins in London at Kjenkins3@bloomberg.net
To contact the editor responsible for this story: Daniel Tilles at dtilles@bloomberg.net
