Sterling has fallen to a record low against the buoyant euro.
By 8.00 a.m., the pound had fallen as low as 72.13 pence per euro - its lowest since the euro's 1999 launch - and was trading down two-thirds of a per cent on the day.
Versus the dollar the pound was up half a per cent at $1.6125, eyeing three-month highs above $1.6186.
The fall came as fresh doubts about the U.S. strong dollar policy boost the single currency and the markets await British trade and retail dataKey data on the retail sector is expected with the British Retail Consortium's monthly sales monitor later today.
But dealers said sterling's fall came as the euro benefited from dollar-negative comments from U.S. Treasury Secretary Mr John Snow, who said yesterday that a cheap greenback would benefit exports.
Dealers said the market would probably be cautious ahead of the Bank of England's inflation report next Thursday, but would watch the BRC closely for an update on the health of the UK consumer sector.