//
According to Reuters, sterling declined by more than a cent versus the dollar, hitting a session low of $1.5770, down by around 1.4 per cent on the day.
It followed the news Britain's economy shrank 0.5 per cent in the last quarter of 2010, going against forecasts for a 0.5 per cent expansion.
Paul Mackel, director of currency strategy at HSBC, said: "Sterling has been clobbered on the data which was very much weather-distorted, but even if you take that into account it's disappointing."
He added it supports the thinking of the Bank of England's Adam Posen that all is not well in the UK economy.
It marks a further change from last Friday when sterling shed 30 pips and was down to a day's low of $1.5878.
Posted by Greg Secker
