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According to Reuters, sterling shed one per cent versus its US counterpart to stand at $1.5622 after results revealed better than forecast US manufacturing data.
This contrasted with weak unemployment figures for the UK after they went up to 7.9 per cent.
What's more, the data also ensured sterling reversed its gains against the euro as the single currency moved higher by 0.45 per cent at 85.15 pence, its highest level since November 29th.
Traders pointed out the European tender was assisted by some month-end buying of a European real-money account.
In addition, it was revealed earlier this morning that Moody's credit rating agency had considered downgrading Spain's debt, which put the euro under pressure and resulted in an increase for the pound as the single currency decreased by 0.13 per cent.
Posted by Greg Secker
