The pound strengthened to the most in more than two weeks against the euro as investors sought the U.K. currency as a haven before two of the euro-area’s cash- strapped nations prepare to sell debt today. Sterling was little changed against the dollar before a British Bankers Association report that economists said would show U.K. mortgage approvals fell to 28,100 in August from 28,441 a month earlier. Italy plans to sell 2014 notes, as well as inflation-linked securities due in 2016 and 2021. Spain will auction bills. Gilts advanced for a second day. The pound appreciated 0.4 percent to 79.43 pence per euro at 8:51 a.m. London time, the strongest level since Sept. 7. The U.K. currency was 0.2 percent stronger at $1.6257. The pound has strengthened 2.3 percent this year, according to Bloomberg Correlation-Weighted Indexes, which track 10 developed-market currencies. The euro tumbled 3.1 percent and the dollar weakened 2.8 percent. The 10-year gilt yield fell one basis point, or 0.01 percentage point, to 1.80 percent. The 1.75 percent bond due in September 2022 gained 0.105, or 1.05 pounds per 1,000-pound face amount, to 99.525. Gilts returned 2.5 percent this year through yesterday, according to indexes compiled by Bloomberg and the European Federation of Financial Analysts Societies. German bunds gained 2.6 percent and U.S. Treasuries rose 1.9 percent. To contact the reporter on this story: Lucy Meakin in London at lmeakin1@bloomberg.net. To contact the editor responsible for this story: Paul Dobson at pdobson2@bloomberg.net.

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