The dollar was at near eight-month lows against the euro in early New York trading amid concerns the expanding US trade gap could curb the nation's economic growth.
Against Europe's common currency, the dollar was at $1.2606. The dollar traded at 107.62 yen. Concern over how the United States will fund its swelling current account and budget deficits has weighed again on the dollar in recent days.
Earlier today, sterling was hit by weak UK GDP data as the market became more convinced the upward momentum of the interest rate cycle may have peaked at the current level of 4.75 per cent.
Gross domestic product rose by just 0.4 per cent in the three months to September, the weakest quarterly growth rate since the first quarter of 2003. Economists had been forecasting 0.5 per cent growth. GDP was up 3 per cent on the year, down from a 3.6 per cent annual rate in the second quarter."
The moves left sterling down 0.4 cents against the dollar at $1.8234 and down Yen 0.2 to Yen 196.22 against the Japanese currency, while the euro gained 0.2p versus the pound to £0.6918.
The dollar remained near multi-month lows as Ben Bernanke, Federal Reserve governor, said high oil prices had caused a significant shock to the US economy, but the consequences were manageable.