BLBG:Pound Rises Against Dollar as Report Shows Insolvencies Declined
The pound rose for the first time in three days against the dollar after an industry report showed the number of U.K. business insolvencies fell in September.
Gilts fell, pushing 10-year yields toward the highest level in a month. Insolvencies dropped 3.1 percent from a year earlier to 1,679 companies, affecting 0.08 percent of all businesses, data from Dublin-based Experian Plc (EXPN) showed. The U.K. economy expanded in the third quarter, according to a Bloomberg News survey before the report on Oct. 25.
The pound appreciated 0.2 percent to $1.6030 at 8:34 a.m. London time, after declining 0.4 percent last week. Sterling was little changed at 81.36 pence per euro. It earlier dropped to 81.49 pence, the weakest level since June 15.
Bankruptcies at U.K. companies with 26 to 50 employees fell 16 percent to 92 companies, with 0.19 percent of businesses of that size affected compared with 0.23 percent a year earlier.
The pound has weakened 1 percent in the past three months, according to Bloomberg Correlation-Weighted Indexes, which track 10 developed-market currencies. The euro gained 4.1 percent and the dollar dropped 3.8 percent.
The 10-year gilt yield rose two basis points, or 0.02 percentage point, to 1.90 percent after climbing to 1.96 percent Oct. 18, the highest since Sept. 17. The 1.75 percent bond due in September 2022 fell 0.165, or 1.65 pounds per 1,000-pound face amount, to 98.67.
To contact the reporter on this story: Emma Charlton in London at echarlton1@bloomberg.net
To contact the editor responsible for this story: Paul Dobson at pdobson2@bloomberg.net
