Sterling fell to its lowest in more than a week against the dollar on Thursday, after data showed Britain's goods trade deficit widening more than expected to a seven-month high in February.

The trade gap widened to 10.34 billion pounds from a shortfall of 9.17 billion pounds in January, bigger than all of the forecasts in a Reuters poll of economists.

Sterling weakened to $1.4763, down 0.7 percent on the day, and weaker than $1.4780 before the data was released. It recovered to trade at $1.4785, still down 0.5 percent on the day, with worries about the outcome of a May 7 national election continuing to weigh heavily.

The euro also rose to 72.785 pence from 72.66 beforehand.

Britain's FTSE 100 equity index remained up by 0.4 per cent after the UK data.

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