Sterling extended the previous day's losses despite a better-than-expected reading for monthly UK retail sales, against a backdrop of US dollar strength as investors sought out safe havens.
Sterling tumbled on Monday ahead of a speech by Boris Johnson in which the Prime Minister is expected to insist that there is "no need" for the UK to follow EU rules as part of a future trade deal.
The Financial Conduct Authority said on Friday that it is looking into the surge in sterling that took place just seconds before the Bank of England’s interest rate announcement on Thursday.
Sterling was trading on the back foot at the end of the week amid a risk-off environment as investors took stock of the new China coronavirus and the impact that it might have on that economy, and positioned themselves ahead of the central bank meetings in the UK and US that were scheduled for over the week ahead.
Bank of England policymaker Michael Saunders reiterated his call for an interest rate cut on Wednesday as he said the UK economy has remained "sluggish".
Sterling was under pressure on Monday after Bank of England policymaker Gertjan Vlieghe suggested that he would vote for an interest rate cut this month.
Sterling lost ground on Thursday after outgoing Bank of England governor Mark Carney struck a dovish tone in a speech at an event on inflation targeting, suggesting that the central bank could cut interest rates soon.
Sterling took a tumble on Tuesday amid news that Prime Minister Boris Johnson plans to add a clause to the Brexit bill making it illegal to extend the transition period beyond the end of next year, reviving the threat of a no-deal Brexit.
Sterling weakened on the back of a key voter poll showing that the Tories' lead had narrowed in just the past fortnight.
Sterling came under pressure on Wednesday after a widely-followed opinion poll predicted the Conservatives would win the General Election with a significantly smaller majority than initially expected.
Sterling hit a seven-month high against the dollar on Wednesday as the Conservatives continued to lead the polls in the run-up to the general election next week.
Friday saw another sudued session of trading in global foreign exchange markets.
The pound was little changed on Thursday, despite the release of poll data predicting a big win for Conservatives at the next general elections and a strong reading on UK consumer confidence.
The European Central Bank's newly arrived leader Christine Lagarde is facing pressure from the governing council to overhaul how monetary policy is decided and improve the monetary authority's internal decision-making process.
Sterling shot higher on Monday after Nigel Farage said the Brexit party will not stand in the 317 seats won by the Conservatives at the 2017 general election, boosting Boris Johnson's chances of success in the upcoming election.
Rate-setters in Moscow surprised some analysts at the end of the week with a larger than expected reduction in short-term official interest rates.
The pound was unfazed by the Speaker of the House, John Bercow's, decision not to allow a "meaningful vote" on the Prime Minister's Brexit proposal to go ahead on Monday, as some observers had correctly anticipated.
China released third-quarter GDP figures on Friday showing the economy grew at its slowest pace since the early 1990s as the trade war with the US took its toll.
Parliamentary approval of Prime Minister Boris Johnson's Brexit deal proposal would most likely pave the way for interest rate hikes, a top Bank of England policymaker said.
Traders shied away from pushing Sterling any higher on Thursday despite confirmation that the UK and the European Union had reached an agreement on the terms of the former's withdrawal from the bloc.