The pound rose for a second day against the euro before a report that economists said will show U.K. producer price-growth stayed at the fastest since 2008, weakening the case for more economic stimulus. Sterling headed for a second weekly gain against the 17- nation currency. The cost of goods at factory gates rose 5.9 percent in August from a year earlier, the Office for National Statistics will say today, according to a Bloomberg News survey. The Bank of England kept interest rates unchanged yesterday and resisted calls to boost its asset-purchase program. The pound appreciated 0.1 percent 86.89 pence per euro as of 8:47 a.m. in London, extending this week’s gain to 0.8 percent. The U.K. currency advanced 0.1 percent to $1.5968, after weakening to $1.5913 yesterday, the lowest since July 13. Britain’s currency fell 6.4 percent in the past 12 months against a basket of nine major peers, according to Bloomberg Correlation-Weighted Currency Indexes, making it the second worst performer after the dollar. Gilts rose, with the 10-year yield declining two basis points to 2.33 percent. The two-year yield fell one basis point to 0.54 percent. -- Editors: Nicholas Reynolds 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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