By Aidan Meikle

Kirsten Donovan @ Reuters has reported that sterling slipped against a broadly stronger dollar on Thursday, but held just above the previous session’s multi-week lows, as falling equity markets reflected risk averse sentiment.

Concerns over the UK’s banking sector, a raft of weak economic data and uncertainty over the effects of the Bank of England’s quantitative easing programme have seen sterling drop over 2 percent against the dollar this week.

“We’ve seen some consolidation in sterling overnight from the multi-week lows we saw yesterday but generally sentiment towards the pound remains weak and it could be subject to further bouts of selling on any bad news we get on the UK economy,” said Geraldine Concagh, economist at AIB Group Treasury.