Pound Little Changed Versus Dollar Before U.K. Finances ReportMorgane Lapeyre
The pound was little changed versus the dollar and euro before a report that economists said will show U.K.’s public finances improved in July.
Sterling was about 0.2 percent from a two-month high against the U.S. currency. The U.K. government’s budget surplus excluding temporary support for banks was 2.9 billion pounds ($4.54 billion) last month, compared with a surplus of 1.6 billion pounds a year earlier, according to the median estimate of 24 analysts in a Bloomberg News survey.
The pound traded at $1.5668 at 7:25 a.m. London time after advancing to $1.5696 yesterday, the highest level since June 18. Sterling was at 85.62 pence per euro.
The U.K. currency has gained 5.3 percent in the past six months, the best performer of 10 developed-nation currencies tracked by Bloomberg Correlation-Weighted Indexes. The euro rose 4.1 percent and the dollar strengthened 2.2 percent.
Gilts lost investors 4.3 percent this year through yesterday, according to Bloomberg World Bond Indexes. German bonds dropped 2.1 percent and Treasuries declined 3.5 percent.