Pound Advances as U.K. Growth Beats Forecast Amid Spain Protests

The pound rose for the first time in four days against the dollar after a government report showed the economy shrank less than previously estimated in the second quarter, adding to optimism the recession is easing.

Sterling climbed to a three-week high versus the euro after Spanish protesters marched for a second night in Madrid yesterday, calling for an end to austerity measures. A general strike in Greece yesterday attracted as many as 35,000 protesters into downtown Athens. U.K. government bonds fell, with 10-year yields rising from the lowest in two weeks.