Pound Pares Gains Against Dollar, Euro on Wider-Than-Expected Trade Gap

(Bloomberg) -- The U.K. pound pared gains after a government report showing the trade deficit widened more than expected.

The U.K. currency rose earlier for a third day against the dollar on speculation the Bank of England will keep raising borrowing costs to tame inflation after a report showed house- price increases accelerated last month. The pound gained 12 percent against the dollar and the yen in the past year on the view that faster growth and quickening inflation will push interest rates higher.


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