By David Wigan
London, May 13 (Bloomberg) -- The pound rose against the dollar on speculation economic growth in the world's biggest economy is faltering, deterring investors from U.S. assets and the currency needed to buy them.
``The dollar could fall further,'' said Stacey Seltzer, currency economist at Brown Brothers Harriman& Co. ``The risk is we'll get further weakness'' in U.S. economic reports.
The Federal Reserve last week left its key interest rate at a 40-year low of 1.75 percent, saying a sustainable economic recovery is ``still uncertain.'' That came as the Standard & Poor's 500 Index of shares fell for the seventh week in eight.
The pound rose to $1.4646, compared with $1.4605 in London late Friday. It has gained seven out of the past eight weeks against the dollar. It was at 62.58 pence per euro, from 62.47.
The cost of goods leaving U.K. factories probably rose in April, suggesting manufacturers in Europe's second-largest economy may be past the worst of a slump that began last year. Producer output prices increased 0.2 percent, after climbing 0.1 percent in March, according to the median forecast of 25 economists surveyed by Bloomberg News. A report is due at 9:30 a.m. London time.
The British Retail Consortium will report that U.K. retail sales grew about 2.5 percent in April, compared with the same period last year, the Times of London newspaper reported. BRC figures are due at 7:30 p.m. London time.
A government report for March showed U.K. retail sales rose for a second month as shoppers took advantage of the lowest borrowing costs in 38 years to buy more clothing, furniture and appliances. Sales expanded 5.6 percent from a year earlier, the Office for National Statistics said.
Jobs
U.K. unemployment was probably unchanged at 3.1 percent in April, according to the median forecast of 18 economists surveyed by Bloomberg News. The rate is at the lowest level in 26 years. A report is due on Wednesday.
U.S. figures this week include April advance retail sales due on Tuesday, and consumer prices due on Wednesday. Figures on March business inventories and industrial production are also slated for released on Wednesday.
The Federal Reserve Bank of Philadelphia's May general economic index will be published on Thursday, with University of Michigan consumer-confidence numbers following on Friday.