On Tuesday, the pound fell to near three-month low against the dollar after data showed that growth in the UK manufacturing sector slowed last month, weakening the growth forecast in the third quarter.
GBP/USD pair reached 1.5310, the lowest level since June 9, from 1.5359 on the eve of data publication, before returning back to 1.5341.
The index of business activity in the UK manufacturing sector by Markit, fell to 51.5 in August from 51.9 in July, compared with the expected growth to 52.0.
The domestic market remains the main one for the growth of new orders, while new export activities declined for the fifth month in a row.
However, export orders continued to decline, and the companies attributed the reduction of foreign demand with the pound rates, low levels of sales in the Eurozone and the slowdown of the Chinese economy.
"The manufacturing sector in UK continues to show lack of dynamics, with fluctuating growth at the stagnation level and limited job losses, registered first time in 26 months," - said Rob Dobson, senior economist at Markit survey compiler.
"Based on this, the sector is unlikely to make a significant contribution to the strong growth of GDP, which is expected in the third quarter."
The pound went also down against the euro, EUR/GBP being traded at 0.7350.
In the Eurozone, data on Tuesday showed that manufacturing activity growth slowed in August.
Eurozone manufacturing PMI fell to 52.3 last month from 52.4 in July, as the steady growth in Germany, Netherlands and Spain was offset by a fresh decline in France and Greece.
Earlier on Tuesday, the weak Chinese economic reports added concerns over the future of the second largest economy in the world.
Manufacturing activity in China declined in August, the fastest pace in three years, while activity in the services sector also slowed down.
The dollar came under pressure amid continuing uncertainty whether the recent turmoil in global financial markets will postpone the interest rates rise by Fed.
Currently, investors are waiting for Friday's publication of data on the number of employees in the US non-farm payrolls in August, which may clarify the likelihood of rising interest rates in the near future.
The USD index, which tracks the US currency against a basket of six major rivals, fell 0.44% to 95.55, being traded at 92.52 , the eight-month low reached last Monday.