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Forex traders have stayed away from sterling as it fell to $1.5972, a two-month low against the American currency, Reuters reports.
And the pound plummeted to a four-month low against the euro, which surged by 0.3 per cent to 88.13 pence due to concerns over the UK economy.
Analysts at Lloyds said in a note to clients that the pound's vulnerability is "coming into focus", adding: "If growth numbers continue to disappoint the yield advantage sterling currently enjoys against the dollar might start to be eroded."
This comes after the pound fell against the euro on Friday, following increases in the single currency by one per cent the previous day.
Speculation emerged that a possible Bank of England interest rate rise may be put back following a larger-than-expected drop in UK retail sales last week.
Posted by Greg Secker
