The pound fell versus the dollar, set for a fourth weekly decline, as a survey showed investors are increasingly pessimistic about the euro area, Britain’s biggest trading partner.
The pound fell to the weakest level in a month versus the euro as a report showed the U.K. inflation rate stayed near a five-year low, adding to speculation the Bank of England will delay increasing interest rates.
The euro declined against the yen for the first time in three days after European Central Bank Vice President Vitor Constancio said policy makers may consider buying government debt next quarter.
Hedge funds and other large speculators cut their net wagers on a sterling advance by 28,915 contracts in the past three weeks, the biggest reduction in a year.
Sterling extended its biggest weekly advance versus the greenback since June amid speculation the sale of a stake in Verizon Wireless by Vodafone Group Plc will lead to inflows into the U.K. currency.
Treasuries rose, with 10-year yields approaching a three-month low, before a government report that economists predict will show U.S. job openings dropped in March.
