The British pound surged to a four-month high against the dollar and rose against the euro in London trading after the Bank of England kept its benchmark interest rate unchanged and the European Central Bank cut its key rate.
The pound rose to $1.6535 at 1:10 p.m. in London from $1.6330 yesterday. It earlier reached $1.6555, the highest since Jan. 31. The pound gained to 71.06 pence per euro, from 72.67 late yesterday. It has dropped 8.4 percent against the euro this year,