British Pound Rises for Third Straight Day Against U.S. Dollar

By Kim-Mai Cutler

Oct. 15 (Bloomberg) -- Britain's pound rose for a third day against the dollar and traded near the highest level in a week versus the euro.

The U.K. currency climbed to $1.7491 as of 7:08 a.m. in London, from $1.7395 yesterday. It strengthened to 77.80 pence per euro, from 78.30 pence.

Rising stocks and the government's plan to invest 37 billion pounds ($64 billion) to rescue Royal Bank of Scotland Group Plc, HBOS Plc and Lloyds TSB Group Plc helped drive the pound yesterday to its biggest two-day gain since 2005 versus the dollar. The FTSE 100 Index of stocks advanced more than 11 percent this week as global financial markets rebounded after the U.S. joined Britain, Germany and France in supporting banks.

To contact the reporter on this story: Kim-Mai Cutler in London at kcutler@bloomberg.net