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According to Reuters, sterling has risen as investors opted to take profits ahead of the weekend break in trading, with the British currency climbing 0.1 per cent against its US counterpart to $1.6173 at 12:37 GMT.
Ian Stannard, currency strategist for BNP Paribas, explained that the rebound in sterling "looks to be a bit of a corrective move".
Worries still remain over the state of the British economy after official figures revealed net borrowing in the country was £20.32 billion for November - the highest since records began in 1993.
"The overall picture is negative for the currency," Mr Stannard added.
Yesterday's drop came after UK retail sales figures for last month were lower than had been expected, coming in at -0.3 per cent rather than the 0.4 per cent increase that was forecast.
Posted by Clive Arneil
