The pound dropped to a 10-week low against the dollar before a government report that analysts said will show the U.K. economy expanded in the first quarter. Sterling was 0.6 percent from a one-month low versus the euro. Gross domestic product in the U.K. grew 0.3 percent in the first three months of the year, matching an initial estimate on April 25, according to the median forecast of 33 economists in a Bloomberg News survey. The pound fell 0.1 percent to $1.5030 at 7:37 a.m. London time after declining to $1.5014, the lowest since March 14. Sterling traded at 85.38 pence per euro after depreciating to 85.90 pence yesterday, the weakest since April 22. A separate report will show U.K. exports dropped 1 percent in the first quarter after declining 1.6 percent in the previous three months, according to a Bloomberg survey. Sterling has fallen 3 percent this year, the third-worst performer after the yen and Australian dollar among the 10 developed-nation currencies tracked by Bloomberg Correlation-Weighted Indexes. The U.S. currency gained 5.8 percent and the euro strengthened 2.6 percent. U.K. gilts lost 1.9 percent this month through yesterday, according to indexes compiled by Bloomberg and the European Federation of Financial Analysts Societies. German bonds dropped 1 percent and Treasuries fell 1.5 percent. To contact the reporter on this story: Neal Armstrong in London at narmstrong8@bloomberg.net To contact the editor responsible for this story: Paul Dobson at pdobson2@bloomberg.net

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