The pound strengthened the most in a week against the euro as U.K. industrial production expanded in March and the Bank of England refrained from adding stimulus measures that tend to debase a currency.
The pound climbed the most in two weeks against the euro amid bets its 6.5 percent slide this year has been excessive amid the possibility the government will delay fiscal austerity measures in its budget next week.
The pound rose for a third day against the euro, set for its biggest weekly gain in two years, amid bets the Bank of England will refrain from extending its stimulus program in contrast to its European counterpart.
The dollar is likely to extend gains as the U.S. economy outperforms its counterparts, moving the Federal Reserve closer to ending its monetary stimulus, said Stephen Jen, managing partner at SLJ Macro Partners LLP.
The Canadian dollar strengthened from an almost eight-month low against its U.S. counterpart as the nation recorded the smallest merchandise trade deficit in almost a year in January on exports of crude oil and bitumen.
The euro touched its lowest level in almost two weeks versus the yen as German consumer sentiment stagnated and Spanish borrowing costs rose at a bill auction amid concern the region’s debt crisis is deepening.