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It has also been affected by the eurozone crisis, with the single currency falling as Standard & Poor's (S&P) threatened amass credit downgrade of European countries unless this week's summit leads to firm action.
Sterling fell 0.2 per cent to $1.5621, approaching last week's low point of $1.5577, reports Reuters.
This came as a survey from the British Retail Consortium showed a drop in high street sales for retailers in November despite a swathe of discounts and mortgage provider Halifax reported a 0.9 per cent drop in UK house prices for the month.
Geraldine Concagh, economist at AIB Group Treasury in Dublin, told the news provider that both these studies had added to the country's economic pessimism but that sterling was "still driven by events elsewhere and the general appetite for risk, with sentiment hurt by the S&P comments".
The Q4 Manufacturing Outlook survey from the Engineering Employers Federation and BDO showed yesterday that manufacturing was on the decline in the UK amid a general economic slowdown.
Posted by Greg Secker
