Pound Falls Fourth Day Against Dollar Before Inflation Report
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The pound weakened for a fourth day against the dollar on speculation investors cut their holdings of the U.K. currency before the Bank of England presents its updated inflation forecasts tomorrow.
Sterling dropped to a two-week low versus the euro even after an industry report showed a gauge of U.K. house prices climbed to the highest level since June 2010. The pound has slumped 2.4 percent against the dollar since strengthening to a three-month high of $1.5606 on May 1. Government bonds fell as the Debt Management Office sold 4.75 billion pounds ($7.25 billion) of five-year gilts.