The pound rose for a third day against the euro as speculation that European leaders are failing to come to grips with the sovereign-debt crisis boosted demand for British assets as a haven.
Sterling rallied after its biggest weekly gain versus the 17-nation currency since January. Greek Prime Minister George Papandreou agreed to step down to allow the creation of a unity government and Italy’s borrowing costs climbed to a euro-era record as Prime Minister Silvio Berlusconi’s majority unraveled before a parliamentary vote tomorrow. U.K. gilts rose as a report showed U.K. employment confidence fell.
