Pound Climbs From 10-Week Low on Bets Drop Overdone, GDP Growth
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The pound climbed from a 10-week low versus the dollar amid speculation its 3 percent fall this month was excessive and as a government report confirmed the U.K. economy returned to growth in the first quarter.
Sterling advanced against most of its 16 major peers as the report showed inventories increased and consumer spending rose. Bank of England Governor Mervyn King said on May 15 that a recovery was in sight. The central bank also boosted its economic forecast, predicting growth will quicken to 0.5 percent this quarter. U.K. government bonds were little changed.