May 15 (Reuters) - The pound briefly extended gains

against the U.S. dollar on Thursday after data showed the

British economy grew faster than expected in March.

Official figures showed the UK economy grew 0.2% in March

from February, compared to a flat reading of 0.0% expected by

economists polled by Reuters.

Sterling rose 0.1% to $1.327 after rising to $1.328

after the data. Against the euro, sterling pared

losses and was last trading flat at 84.29 pence after hitting a

six-week high against the common currency earlier this week.