Britain’s currency rose against the euro as investors sought the relative safety of sterling after Italian and Spanish bond yields advanced, stoking concern that the euro region’s debt crisis is deepening. The pound gained versus all but one of 16 major currencies tracked by Bloomberg, strengthening most against the Australian dollar and the Swiss franc before a report today economists estimate will show inflation decelerated last month. Spanish 10- year bond yields rose above 6 percent yesterday for the first time since the euro was introduced. “The pound is proving a viable alternative to the euro for international buyers and appears largely immune to the rising yields faced by other eurozone governments,� wrote Andrew Wilkinson, chief economic strategist at Miller Tabak & Co. in New York, in a note to clients. The pound rose 0.2 percent to 85.58 pence per euro at 7:42 a.m. London time, and also climbed 0.2 percent to A$1.5623. The currency was little changed against the U.S. dollar at $1.5923. The pound has appreciated 1.9 percent in the past month, making it the best performer among 10 developed-nation currencies tracked by Bloomberg Correlation-Weighted Indexes. It’s still 3.8 percent weaker in the past year. To contact the reporter on this story: Anchalee Worrachate in London at aworrachate@bloomberg.net To contact the editor responsible for this story: Daniel Tilles at dtilles@bloomberg.net.

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