Sterling slid against the euro and hit a fresh three-week low against the dollar on Monday after data showed British manufacturing output fell at its sharpest pace in nearly three years in March. Sterling had fallen to $1.8840, its lowest since mid-April. It also slipped to 68.05 pence per euro from 67.90 pence before the data. "The data is quite negative for sterling," said Ian Stannard, currency strategist at BNP Paribas in London. "Manufacturing is much worse than expected. And on top of that PPI data suggests that inflationary pressures are building as well. This is not good for sterling and highlights the policy dilemma faced by the BoE."