The pound has continued its decline against the dollar ahead of reports from the Office of National Statistics (ONS) which are likely to show slowing manufacturing and consumer prices.

Experiencing a slight fall, the sterling traded at $1.9676 from $1.9701 against last week's figures.

Adrian Schmidt, senior currency strategist at Royal Bank of Scotland Group, told Bloomberg: "With softer inflation numbers, we could see the pound not only drop against the dollar, but euro-sterling head higher as well."

Economists are forecasting that manufacturing prices rose in May by 0.4 per cent after adding 0.5 per cent in April; while consumer prices are likely to have risen by an annual 2.6 per cent, a study by the news source has shown.

The Japanese yen has, however, gained against the UK currency ahead of the data release which is scheduled for launch today.

In addition, CPI reports expected tomorrow are likely to show a decline to 2.6 per cent from 2.8 per cent in April.