Sterling fell more than one percent against the dollar on Friday as the greenback gained across the board on a much stronger than expected US jobs report.
Sterling, already down against the dollar for most of the European session, tumbled two cents in rapid order after Labour Department data showed US employment rose last month at the fastest pace in nearly four years.
However, the pound held steady against the euro. Dealers looked ahead to next week's Bank of England interest rate meeting, though economists predicted it would hold borrowing costs steady after two hikes since November.
"The US jobs figure was a very good number and very positive for the dollar against European currencies," said Sabrina Jacobs, currency strategist at Dresdner Kleinwort Wasserstein.
"We don't think the BoE will act on rates next week. But the situation is still favourable for sterling versus the euro because UK rates are still higher than eurozone."
By 1430 GMT, sterling traded just over 1.5 percent lower on the day at $1.8280, more than three cents below the previous session's one-month high of $1.8604.
The pound traded fairly steady at 66.38 pence. Sterling's trade-weighted index slipped to 105.40 from 105.70.
Data on Friday showed house prices in Britain surged 2.2 percent last month to stand 18.5 percent higher in the latest three months compared with a year ago, according to the Halifax bank.