BLBG:Pound Little Changed Versus Dollar as Business Sentiment Rises
The pound was little changed against the dollar and euro as a report showed U.K. business sentiment and hiring intentions improved last month.
A confidence index rose to 92.2 in March from 90.6 in February and a hiring gauge increased to 96 from 95, accountancy firm BDO LLP said today. Still, its output index, at 93, remains below the 95 level that indicates positive growth one quarter ahead. Standard & Poor’s affirmed Britain’s top AAA credit rating on April 5, and kept the outlook negative.
The pound traded at $1.5329 at 7:44 a.m. London time, after rising to $1.5363 on April 5, the highest since Feb. 20. Sterling was at 84.70 pence per euro.
The pound has declined 4 percent this year, according to Bloomberg Correlation-Weighted Indexes that track 10 developed- nation currencies. The dollar has gained 2.5 percent and the euro rose 0.7 percent.
U.K. gilts rose last week, with 10-year yields falling to 1.63 percent, the lowest since September, as a U.S. report showing employers added fewer jobs in March than economists forecast boosted demand for Britain’s fixed-income assets.
Gilts returned 2.4 percent this year through April 5, according to indexes compiled by Bloomberg and the European Federation of Financial Analysts Societies. German bonds gained 1.1 percent and Treasuries rose 0.7 percent.
To contact the reporter on this story: David Goodman in London at dgoodman28@bloomberg.net
To contact the editor responsible for this story: Paul Dobson at pdobson2@bloomberg.net
