Pound Rises for Sixth Week on Signs of U.K. Economic Recovery
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The pound rose for a sixth week versus the dollar, sending it to a four-month high, on signs the economy is emerging from recession and after the Federal Reserve announced another round of stimulus measures.
Sterling matched the longest run of weekly gains since July 2007 as reports showed the U.K. trade deficit shrank in July as exports soared and unemployment fell the most in more than two years. The Dollar Index slid to the lowest since May after the Fed announced Sept. 13 a third series of asset purchases, known as quantitative easing, to boost the economy. Gilts fell for a second week amid increased bets for faster inflation, pushing 10-year U.K. yields to the highest level in four months.