The dollar has weakened slightly against the pound sterling following the decision by the Bank of England to hold interest rates.

Down from a one-week high of $1.9747, the dropped fell against the pound, despite data which showed that wholesale inventories were up and jobless claims were down.

A report from the US department of commerce highlighted a 0.3 per cent rise in wholesale inventories, while jobless claims fell to 309,000.

The currency also declined against the Japanese yen, putting an end to a run of earlier gains.

Despite the currency movement, Daniel Katzive, analyst at UBS, told the Financial Times that the dollar had a tendency to react well to weakness within the equity market, as the US had built up large foreign stocks over the past few years.

"As such, the current period of equity market uncertainty reinforces expectations that the dollar can trade firmer in the near-term," he forecast.