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Dollar and sterling fall
The dollar plunged in trading on Friday afternoon after data revealed the US economy cut 131,000 jobs in July, intensifying fears about the US economic recovery.
The dollar fell 0.28 per cent against sterling, to $1.5935.
It also plummeted to an eight month low against the yen, falling to 85.49, from around 86.00 before the data.
Sterling had already fallen on Friday morning to around $1.5870, and against the euro to 83.10p.
The euro rose to $1.3210, from around $1.3180 before the release.
Mark Bolsom, head of the UK trading desk at Travelex Global Business Payments, said the falls would stoke concerns about the health of the US recovery.
He said: "The concern for the UK market will ultimately be contagion.
"We saw a drop in industrial production this morning, which caused sterling to fall.
"The mood of optimism may be dimming.
"With the U.S recovery appearing to slow, we may now see the Federal Reserve step in and resume their quantitative easing programme, to help the economy gain traction."
