Pound briefly hits 2-year low vs dollar

LONDON (Reuters) - The pound briefly hit a two-year low against the dollar on Friday, after a stronger-than-expected reading of U.S. business activity contrasted with a recent string of figures showing ongoing weakness in the economy.

Sterling slipped as low as $1.8237 according to Reuters data after the U.S. Institute for Supply Management-Chicago business barometer posted a surprising surge to 57.9 in August, its highest since June 2007.

This compared with disappointing figures on UK housing and retail sales, as well as a flat reading of economic growth earlier this week, which has added fuel to the argument that the UK economy is suffering and could require a cut in interest rates in the coming months.

(Reporting by Naomi Tajitsu)