Sterling held near its lowest level against the dollar in almost seven weeks on Friday and was down against the euro, remaining under pressure from economic data that fanned speculation of a UK interest rate cut. Earlier this week, traders saw a dovish inflation report from the Bank of England and disappointing manufacturing and retail sales releases. This drove UK interest rate markets to price in a small chance of a rate cut this year. "The dollar is recovering broadly, not only against sterling but also against the euro," said Marios Maratheftis, currency strategist at Standard Chartered in London. "Domestic issues in the UK are also not so positive. It seems the Bank of England will not go for any more hikes and sterling had been benefiting from rate rises in 2004. So the end of hikes will not be positive."