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According to Reuters, the pound decreased to $1.5775 after comments by Bank of England (BoE) policymaker Adam Posen that the central bank should not be putting more money into the economy.
Sterling also suffered a decline against the euro as the single currency rose to around 85.45 pence from approximately 84.92 pence.
But earlier today the pound made gains to a seven-week high versus the dollar at $1.5896 after a number of positive UK releases.
Michael Hewson, analyst at CMC Markets, pointed out that sterling was benefiting from the morning data that suggested the BoE was further away from quantitative easing than the Federal Reserve.
He added: "I think we can have another crack at $1.60 and would expect the pound to be underpinned by further dollar weakness."
Posted by Greg Secker
