Pound fights back against euro

THE pound traded near a six-month high against the euro on speculation the British economy is growing quickly enough to justify one more interest-rate increase this year by the Bank of England.

Property values in Britain rose for a third month in four and service industries unexpectedly accelerated in March, reports showed yesterday, contrasting with other recent data suggesting house-price growth and consumption may be cooling.

The bank meets today to decide whether to change the cost of borrowing and will announce its decision tomorrow.

“The housing market is showing signs of stabilising so there’s a chance the bank may raise rates again in the summer,” said Lee Ferridge, a proprietary currency trader at Rabobank Groep in London.