Sterling falls heavily after recent rally vs. US dollar

The pound fell by 1.48 cents (0.89%) against the US dollar on Friday, finishing the day at $1.6441.

• In early trading on Friday, sterling weakened considerably against the dollar as traders booked profits ahead of the G8 meeting over the weekend.
  
• Cautionary comments from UK Chancellor Alistair Darling also contributed to sterling’s fall mid-afternoon, after he warned that rising oil prices had the potential to be a “huge problem” for any recovery.
  
• So far today, the pound has resumed its slide against the greenback as investors eye important data out later this week.
  
• There are no major announcements due in the UK today, whilst in the US TIC Long-Term Purchases data is out at 14.00 BST.