Britain's economic woes and ongoing political worries has seen its currency continue to depreciate.
Manufacturing output fell an unexpected 0.9% in January.
Prime Minister, Gordon Brown says 60% of Britain's exports go to Europe and there has not been the expected growth there.
Mr Brown also confirmed a pay freeze on senior public employees and said the Budget will be held on 24 March, the BBC reports.
Jeremy Stretch of Rabobank says investors want to know when the government books will stabilise, and how it will tackle burgeoning debt.
Mr Stretch says speculators are targeting sterling.