Sterling slipped against the dollar after touching a three-week high on Monday as a rebound in US capital inflows data lifted the greenback, with the pound still subdued by dwindling British rate hike expectations.
By 1345 GMT, sterling traded a quarter percent lower on the day at $1.8419. It had briefly hit a three-week high of $1.8467 earlier in the session while holding above recent one-month lows against the euro.
The dollar benefited from data showing foreign investment in US assets rebounded smartly in June. Investors had to wait until later in the week for key British data after the pound recently suffered from the Bank of England's dovish-sounding inflation report last week.
The pound traded a touch stronger at 67.00 pence per euro, above recent one-month lows at 67.27.
But sterling faced a fresh challenge with the Royal Institute of Chartered Surveyors due to issue its survey of the housing market late on Monday.