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Reuters reports the currency was down 0.3 per cent at 13:19 BST to trade at $1.5565, its weakest performance since July 30th.
Last week, Forex trader demand for the pound was good as major financial groups released strong first-half figures and sterling was supported by a broadly weaker dollar.
But fears over US economic recovery were not enough to buoy the UK money after yesterday's announcement by Bank governor Meryvn King that gross domestic product is expected to be weaker than predicted, despite good expansion during the second quarter of 2010.
The inflation report described the level of economic activity as "well below its pre-crisis peak", leading to sterling losing 1.4 per cent of its value by the end of trading yesterday.
Posted by Sara Secker
