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.
Cocoa fell in London and New York on speculation prices that rallied yesterday climbed too far as rainfall may favor crop development in West Africa, the main growing region. Raw sugar rose in New York.
Britain’s underlying budget deficit widened in April, dealing a blow to Chancellor of the Exchequer George Osborne as the International Monetary Fund prepares to deliver its verdict on the U.K. economy.
The dollar fell against the euro for a second day as comments from Federal Reserve policy makers fueled speculation Chairman Ben S. Bernanke will tell Congress tomorrow the pace of monetary stimulus should be maintained.
The Standard & Poor’s 500 Index returned to a record as a Federal Reserve official said bond purchases should continue and Goldman Sachs Group Inc. forecast the stock rally will last at least through 2015. Treasuries rose and the yen pared earlier losses while grains and gold fell.
The pound slid to a six-week low against the dollar after a government report showed inflation slowed more than economists forecast, giving the central bank more room to boost stimulus that tends to weaken a currency.