London, Sept. 26 (Bloomberg) -- The British pound was little changed near an eight-day high against the euro amid speculation the U.K. economy will grow faster than that of the dozen countries that share the common currency. The pound was at 62.74 pence per euro at 9:45 a.m. in London, compared with 62.65 late yesterday. It earlier rose to 62.63 pence per euro, the strongest since Sept. 16. It was at $1.5605, compared with $1.5622.
``Sterling should do OK'' in coming months, said Martin Bayntun, who helps oversee 15 billion pounds ($23 billion) at Gartmore Investment Management. ``U.K. (economic) fundamentals look relatively good.'' The International Monetary Fund yesterday cut its 2002 growth forecast for the euro region to 0.9 percent from 1.4 percent because European shoppers are buying less than expected. The U.K. economy will grow 1.7 percent this year, rising next year to 2.4 percent, the IMF said. Expansion lures investors to its currency because financial assets appreciate.
U.K. mortgage lending rose by 4.85 billion pounds in August, below May's record of 5.19 billion pounds, the British Bankers' Association said. A booming housing market is helping to spur Europe's second-biggest economy. The pound is the ``Cinderella currency that has three ugly sisters -- the euro, dollar and yen,'' said David Bloom, a currency strategist at HSBC Bank Plc. The U.K. currency may rise to $1.74 by the end of March, he said. //www.quote.bloomberg.com