Sterling lost more than half a percent against the dollar on Monday as the greenback rose against most major currencies after its slide on Friday on the back of not-so-strong jobs data. Traders said the market was keenly awaiting a Bank of England (BoE) interest rate decision due on Thursday which is expected to leave base interest rates unchanged at 4.75 percent.
"The dollar generally has a firmer tone," said Tim Fox, market analyst at National Australia Bank in London.
"The BoE is this week, and we are looking for no change." All 50 economists polled by Reuters last week were expecting the central bank to leave rates unchanged. But while 13 of those polled said the next move would be down, 28 saw at least one more rate hike.
But investors will scan the minutes of this week's rate meeting for clues as to whether the central bank will be tightening its monetary policy in the months ahead.
At 1520 GMT sterling traded at $1.9133, down more than half a percent on the day. It was also a touch weaker from late Friday levels against the euro, at 68.92 pence.
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