Sterling slipped below $1.34 on Sunday, quoted at $1.3350 against the US dollar in evening trading, down $0.01051 or 0.78 percent from its previous close of $1.3455. One US dollar bought 0.7491 pounds, and 100 pounds converted to $133.50 at the quoted mid-market rate.

The pair traded in a range of $1.3339 to $1.3463 during the session. The move capped a choppy week for the pound. It touched $1.3471 on Wednesday 4 November, the top of its 30-day range, before falling to $1.3351 at Friday's close, a drop of 0.82 percent on that day. It was little changed over the weekend, at $1.3357 on Saturday, before Sunday's quoted fall. Over seven days the pair is down 0.35 percent, while over 30 days it is up 0.87 percent and over one year it is up 1.45 percent. The 30-day range has been $1.3168 to $1.3471, with a one-year average of $1.3410.

The Bank of England was at the centre of the week's trading. On Thursday 5 November it raised Bank Rate by 25 basis points to 4 percent, its first increase in more than three years, in an 8 to 1 vote. Catherine Mann, one member of the Monetary Policy Committee, had wanted a larger rise to 4.25 percent. Sterling briefly rose to $1.3480 immediately after the decision, before giving back the gains as the dollar strengthened.

The Bank acted because inflation is moving away from its 2 percent target. UK consumer price inflation reached 3.5 percent in September, and the Bank now expects it to approach 5 percent by the middle of next year, driven in part by higher energy prices. The Bank said policy was not on a pre-set path, but markets had priced further rises after the decision, with the next decision due on 17 December, the same day as the European Central Bank's.

The dollar side of the pair also moved in the greenback's favour. US October payrolls rose by 165,000, far above forecasts, and unemployment fell to 4.1 percent, reviving expectations of a December Federal Reserve rate rise. Stronger US jobs data and the prospect of higher US rates tend to support the dollar against sterling, and the greenback firmed broadly into the weekend.

Against the euro, the pound was steadier. One pound bought about 1.1986 euros on Sunday, little changed on the day. Sterling is up 1.60 percent against the euro over the past month and 5.37 percent over the past year. Against the yen it stood at about 211.6, and a snapshot of major currencies ranked sterling third of the ten leading currencies, flat on the day as weekend trading thinned.

For households and businesses, a weaker pound cuts both ways. It raises the cost of imports, foreign travel and goods priced in dollars, including fuel, while making UK exports cheaper for overseas buyers. The move so far is modest: the pound remains above its 30-day low of $1.3168 and close to its one-year average. But with US October inflation figures due on Tuesday and Federal Reserve rate expectations shifting quickly, the pair is likely to stay sensitive to data in the coming week.

Traders will also watch the Bank of England's next meeting in December and any further signals from the European Central Bank, which held rates in its latest decision. For now, the pound's week tells a simple story: a rate rise that briefly lifted sterling, followed by a firmer dollar that pulled it back below $1.34.