Pound Falls Versus Dollar Amid Speculation Fed to Slow Stimulus

The pound fell against the dollar, extending a second weekly decline, as speculation the Federal Reserve is moving closer to ending stimulus boosted demand for the U.S. currency.

Sterling dropped to a six-week low versus the greenback after U.S. reports showed consumer sentiment rose in May and an index of leading indicators climbed in April. Fed Bank of San Francisco President John Williams said yesterday that U.S. policy makers may begin to reduce asset purchases in the next few months. Gilts were little changed this week as Bank of England policy maker Martin Weale said expectations for the central bank to keep interest rates low reflected his own view.