Sterling fell broadly on Tuesday after unexpectedly weak manufacturing data rekindled prospects of a further British interest rate cut early next year.
By 1455 GMT, sterling was down 0.42 percent against the dollar at $1.7340 up from day lows of $1.7314. Against the euro the pound was a quarter percent weaker at 67.80 pence.
Figures from the Office for National Statistics showed manufacturing output fell 0.7 percent in October, the third monthly decline in a row and its sharpest fall in seven months, versus analysts' expectations of a rise of 0.2 percent. That left output 0.9 percent lower than a year earlier. "The market has been looking for a bounce in manufacturing output for three months running and has been disappointed on each occasion," said Daragh Maher, senior Calyon foreign exchange strategist in a note.
"This release is not an isolated disappointment, instead joining a growing list of shortfalls on the UK activity front. The Bank's optimism on growth is looking increasingly exposed to downside risks," he added.