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According to Reuters, sterling fell broadly after the UK economic growth figures were weaker than had been expected.
In the last three months of 2010 the economy contracted by 0.6 per cent, while this announcement played a part in the pound hitting the day's low of $1.6097, it has been suggested.
Prior to the figures being released, sterling was trading at around $1.6142.
Furthermore, the euro increased by around 25 pips to 85.82 pence - its highest rate since the end of January.
But earlier this week, the single currency fell by 0.1 per cent against the pound as it moved down to 84.21 pence.
This result came after Bank of England policymaker Martin Weale suggested there should be a small interest rate rise now so that a large one in the future would not be required.
Posted by Greg Secker
