Sterling loses ground after Government's defeat

The defeat for the Government sent ripples through the currency markets - with the US dollar strengthening by a quarter of a US cent against the pound.

Sterling was changing hands for 1.7427 US dollars as the outcome of the vote on 90-day detention for terror suspects was announced, but its value dropped to 1.7404 seconds later.

Despite the agreement of MPs to the amendment allowing police to hold suspects for 28 days, the pound lost further ground to trade at 1.7379 against the greenback.