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At 14:11 BST sterling was 0.6 per cent lower against its US counterpart, Reuters reports, taking it to $1.5962.
The currency had dropped to $1.5917 - its lowest level since June - earlier in the day and it is now down 1.5 per cent so far this week.
Chief FX dealer for City Index Neil Looker noted that the pound "has become the worst performing G10 currency" since Bank of England governor Mervyn King said that he would welcome any weakness as it would help exports.
He added that lower oil prices and a weakness of equity markets around the world has helped the US dollar to pare some of the losses it has made recently.
There was also a surprise fall in US Durable Goods data, which helped boost the dollar as investors took to purchasing it for use as a safe haven.
