Sterling weakened on Friday after disappointing UK retail sales data dented broadening optimism about a currency that is enjoying its best winning streak against the dollar since 2014.
Before Friday's drop, sterling had been rallying against the dollar, with traders welcoming positive noises from the European Union about negotiations for Britain’s exit and growing risk appetite encouraging sterling bulls to add to their positions against a widely weakened dollar.
Sterling was down 0.4 percent at $1.3845 at 16:00 GMT on Friday, a full cent lower from its daily high as the dollar staged a broad recovery. Sterling had earlier hit $1.3945, its highest since Britain’s June 2016 vote to leave the European Union.
Sterling, however, remains on track for its longest winning streak against the dollar since 2014, with five straight weeks of gains.
Against the euro, sterling was down 0.2 percent on Friday and 0.3 percent weaker versus the yen.