The pound traded near the strongest level in almost a month against the euro before the publication of stress tests on European banks that may show euro-region lenders need to raise more capital than their U.K. counterparts. Britain’s currency rose for a fourth day versus the dollar. Europe’s bank stress tests will reveal how reliant nations are on their domestic lenders for funds, while detailing how much government support the finance industry needs to stay solvent. They are due to be published from 5 p.m. London time. The pound was traded at 87.54 pence per euro as of 7:43 a.m. in London from 87.62 pence yesterday, after reaching 87.49 pence on July 12, the strongest since June 16. Sterling gained 0.1 percent to $1.6158 from $1.6156. The pound has dropped 6.7 percent in the last 12 months against nine developed-market peers tracked by Bloomberg Correlation-Weighted Currency Indexes, the second-biggest decline after the dollar. To contact the reporters on this story: Lukanyo Mnyanda in Edinburgh at lmnyanda@bloomberg.net To contact the editor responsible for this story: Daniel Tilles at dtilles@bloomberg.net

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