Sterling was on course for its seventh consecutive day of losses on Monday against the Dollar, the longest losing run since the start of the pandemic in 2020.
This followed the results of a private survey that showed the UK's private sector grew at its slowest pace in six months this month.
The S&P Global/CIPS composite Purchasing Managers' Index revealed a preliminary reading of 50.7, a decline from 52.8 in June, the largest month-on-month fall in 11 months.
This was the weakest reading since January, despite remaining over the 50-mark that separates growth from contraction, Reuters reports.
At the time of writing, the Pound was down 0.2% at $1.2827 after hitting a session low previously of $1.2808, as a preliminary poll of Britain's business activity showed a fall in UK manufacturing and a deceleration in the service sector.
"Rising interest rates and the higher cost of living appear to be taking an increased toll on households, dampening a post-pandemic rebound in spending on leisure activities," according to Chris Williamson, chief business economist at S&P Global.
"Meanwhile, manufacturers are cutting production in response to a worryingly severe downturn in orders, both from domestic and export markets," he added.
Sterling has declined for seven straight days against the greenback.
Moreover, rate expectations in the UK have fluctuated significantly this month. A fortnight ago, money markets revealed traders believed UK rates would reach a peak of around 6.2% by June next year.
Whereas data points indicating an inflation slowdown and weaker growth have led to a reassessment showing traders predict a peak of 5.77% in rates by February from a current level of 5%.
During that time, Sterling has declined almost every day, losing around 2.6% in value, the Reuters report goes on to add. Yet according to weekly data from the US markets regulator, speculators have formed their most valuable bullish bet on the Pound since 2014.
"Unsurprisingly, the Pound weakened on the back of the scaling back of interest rate expectations, retreating to $1.2850 from its recent high of $1.31," said Rupert Thompson, chief economist at Kingswood Group.
"The silver lining here for UK investors was that this transformed last week's gain in global equities of 0.6% in local currency terms into a 2.3% rise in Sterling terms," he added.