AFP - Sterling pared some of its losses but remained weak, particularly against the euro after the dovish minutes from the Monetary Policy Committee's last meeting were released.
The MPC unanimously decided to keep its key repo rate unchanged at 4.75 percent, noting that third quarter Gross Domestic Product could be lower than anticipated, and that house price inflation may ease more than previously forecast.
Many in the market now think British interest rates may have peaked already, though it will take further weak data to confirm this.
Meanwhile, the yen pared losses, rebounding after reaching five-week lows against the euro and the pound, as oil prices came off earlier highs.
Oil prices rose sharply Wednesday due to fears over tight supply, but eased Thursday after the US government announced it is considering releasing some of its emergency reserves in order to offset some of the impact of Hurricane Ivan.
With US crude futures still around 48 usd per barrel, however, oil prices remain at very high levels.