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New data showed the country's trading deficit stood at £7.522 billion in March - up from £6.305 billion in February - resulting in the pound dropping against the dollar, Reuters reports.
It had slipped 0.8 per cent to $1.4790 at 16:14 BST, having dropped as low as $1.4673 earlier in the day.
The British currency was also under pressure due to continued fears economic recovery will be hindered by debt problems in eurozone countries.
"There are problems in the eurozone and the fiscal restraints will hurt growth," Geoffrey Yu, UBS currency strategist, was quoted by the news agency as saying.
Economist for capital economics Vicky Redwood added the trade deficit figures show "the underlying trend in net trade remains disappointingly weak".
Earlier in the day, the pound had rallied after the new coalition government revealed its plans to tackle economic problems in the UK.
Posted by Greg Secker
