Sterling was steady against a broadly stronger dollar, but it stayed well below levels seen last week as increased risk aversion and soft data weighed on the currency. The pound recovered slightly from a 2-1/2 month low against the greenback but sentiment on the currency was hamstrung by falling global stock prices which indicated a dip in risk appetite.
Risk appetite was subdued due to uncertainty about the effectiveness of central banks' liquidity boosting measures that are set to be put in place today. This kept the high yielding pound on the back foot as it is a destination for carry trades where investors borrow low yielding currencies like the yen to fund purchases of higher yielding assets.
Annual house price inflation in England and Wales fell to 4.8 percent in the month to December 8, its lowest rate in nearly two years, said property web site Rightmove. It showed asking prices for homes fell by 3.2 percent on the month, the largest monthly fall since the survey began six years ago. By 1459 GMT the pound was steady versus the dollar at $2.0154, having earlier touched $2.0103, its lowest level since late September. The euro was down 0.35 percent at 71.27 pence.