Sterling dips after weaker-than-expected UK retail data

Sterling weakened against the dollar to a session low of $1.2269 after data showed retail sales in Britain rose less than expected in August.

British retail sales were 0.4% higher than in rain-hit July, figures showed on Friday, compared to a poll of economists by Reuters that forecast a rise of 0.5%.

The pound steadied after the data release and was last down 0.1% at $1.2278 by 0612 GMT. Against the euro, it was broadly flat at 86.74 pence per euro.

The pound had fallen to its lowest since March against the dollar on Thursday of $1.22305 after the Bank of England held interest rates steady, before paring its losses slightly later in the session.