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It stood at 88.78p at 10:04 BST, reported Bloomberg, which attributed the fall to the release of a Markit Economics/Chartered Institute of Purchasing and Supply report.
The document showed the UK services industry weakened more than analysts had predicted, with the index sliding to 53.8 for May from 54.3 in April.
John Hydeskov, chief analyst at Danske Bank A/S in London, told the news agency: "The market has to adjust to the fact that the Bank of England won't lift rates at all this year. Data has been terrible and I think the trend is going to continue."
The Monetary Policy Committee is due to meet on June 8th and 9th 2011 to decide whether to alter the base rate, which stands at the historic low of 0.5 per cent.
Posted by Greg Secker
