Pound Weakens Against Dollar Before BOE as Gilts Open Higher

The pound weakened against the dollar before the Bank of England publishes minutes of its meeting this month, when policy makers kept interest rates and their bond-buying program unchanged. Government bonds rose.

Sterling slipped against 10 of its 16 major peers tracked by Bloomberg. The BOE’s Monetary Policy Committee left its so- called quantitative-easing program at 325 billion pounds ($517 billion) on April 5, and held its benchmark rate at a record low 0.5 percent. A separate report may show U.K. jobless claims rose for a 13th consecutive month.

The pound depreciated 0.1 percent to $1.5901 at 8:08 a.m. London time, and was little changed versus the euro at 82.38 pence. Sterling reached 82.10 pence on April 16, the strongest level since Sept. 9, 2010.

The yield on the 10-year gilt fell two basis points to 2.08 percent, with the two-year note yield also two basis points lower, at 0.41 percent.

Sterling has climbed 0.6 percent in the past month, the best performer after the yen among 10 developed-nation currencies tracked by Bloomberg Correlation-Weighted Indexes. The dollar rose 0.2 percent, while the euro lost 0.5 percent, the indexes show.

To contact the reporter on this story: Lucy Meakin in London at lmeakin1@bloomberg.net.

To contact the editors responsible for this story: Daniel Tilles at dtilles@bloomberg.net.

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