Sterling rises to 5-week high versus dollar

Newly minted one pound coins are seen at the Royal Mint, in Cardiff March 5, 2011.

LONDON (Reuters) - Sterling hit its highest in five-week high against the dollar on Friday, tracking gains in the euro and other riskier currencies as speculation of European Central Bank action lifted investors' appetite for buying riskier assets and currencies.

Euro zone peripheral bond yields fell after French newspaper Le Monde reported the European Central Bank and euro zone governments were preparing co-ordinated action to cut Spanish and Italian borrowing costs.

Sterling rose around 0.4 percent on the day to $1.5747, surpassing the July 19 high of $1.5738.

(Reporting by Jessica Mortimer; editing by Anirban Nag)