Pound Declines to Six-Week Low Versus Dollar on Fed Speculation
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The pound fell for a second week versus the dollar as speculation the Federal Reserve is moving closer to ending its program of asset purchases boosted the U.S. currency against its major peers.
Sterling dropped to a six-week low after Fed Bank of San Francisco President John Williams said on May 16 the U.S. central bank may begin to taper off its monthly asset purchases as early as this summer. The U.K. currency was little changed versus the euro after Bank of England Governor Mervyn King said the Monetary Policy Committee raised its forecast for U.K. growth in the last Inflation Report before he’s replaced by Mark Carney. U.K. government bonds were also little changed.