The pound was poised for a second weekly advance against the dollar before a report economists said will show Britain’s budget deficit narrowed in June from a year earlier. The budget shortfall excluding temporary support for banks fell to 8 billion pounds ($12.2 billion) from 11.8 billion pounds a year ago, according to the median forecast of 20 analysts in a Bloomberg News survey. Sterling strengthened against the dollar since minutes of the Bank of England’s latest meeting showed on July 17 policy makers voted unanimously against expanding stimulus that tends to debase the currency. The pound was little changed at $1.5224 as of 7:45 a.m. in London. It has gained 0.8 percent this week. Sterling weakened 0.2 percent to 86.26 pence per euro, trimming this week’s advance to 0.3 percent. The pound has gained 2.2 percent in the past three months, according to Bloomberg Correlation-Weighted Indexes, which track 10 developed-nation currencies. The dollar also rose 2.2 percent and the euro climbed 2.9 percent. Gilts dropped 2.2 percent this year through yesterday, according to Bloomberg World Bond Indexes. German bonds declined 0.6 percent and Treasuries fell 2.6 percent, the indexes show. To contact the reporter on this story: Anchalee Worrachate in London at aworrachate@bloomberg.net To contact the editor responsible for this story: Paul Dobson at pdobson2@bloomberg.net

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