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According to Reuters, speculation as to whether the interest rate might rise next month has led to the fall, forex traders might be interested to note.
The drop meant the pound was down to $1.5949, below its eight-week high of $1.6060 struck on January 18th, while a London-based trader revealed there was some fast money sold on sterling's decline.
What's more, the financial expert stated: "[Vince] Cable's rally in January looks to be faltering, with the market beginning to question whether the fragile UK economy justifies the gains."
In addition to this, there was further bad news for the pound as it was down by 0.07 per cent against the euro.
This comes after sterling shed nearly 30 pips against its US counterpart on Friday because of a weak reading in UK retail sales.
Posted by Clive Arneil
