Sterling hit a two-week low against the dollar and the euro on Friday, taking a knock after weaker-than-expected mortgage approvals data for April and on position squaring before a holiday weekend.
The number of mortgage approvals for home purchases in Britain edged down in April on a year ago, the first annual decline in nine months, British Bankers' Association data showed on Friday.
Approvals - the number of loans agreed but not yet completed - totalled 64,683 in April after 85,698 in March. That marked a 4 percent fall on a year ago, the first annual drop since July 2005.
"The data this morning was (weak) but it's not seasonally adjusted. I think the move has been driven more by position adjustment," said Stuart Ritson, currency strategist at Rabobank. "Sterling has been the best performing currency over the past month or so, so I think there is some squaring of positions before the weekend. Liquidity is also quite thin," he added.
By 1413 GMT sterling was down 0.9 percent against a broadly strong dollar to hit a two-week low of $1.8565. Dealers said sterling was also being pushed lower in options-related trade, with options expiring at $1.86. Against the euro, the pound was down 0.4 percent, hitting a two-week low at 68.65 pence.
Trade was thin, with activity winding down before a long holiday weekend. US and UK financial markets are closed on Monday.
Sterling has strengthened in recent weeks as upbeat economic data has fuelled expectations that UK interest rates will rise from 4.5 percent later in the year.