Pound Advances From Three-Year Low on Bets Decline Was Excessive
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The pound strengthened from a three-year low against the dollar amid speculation a selloff in the past week was excessive before minutes of this month’s Bank of England monetary policy meeting are released next week.
Sterling dropped to the weakest since June 2010 yesterday when a report showed U.K. manufacturing unexpectedly shrank in May, casting doubt on the strength of the recovery. Consumer-and producer-price inflation reports are scheduled for July 16, with the details of Mark Carney’s first meeting as Bank of England governor due the following day. The dollar fell versus most major peers today before Federal Reserve Chairman Ben S. Bernanke speaks on the economy. U.K. government bonds rose.