UPDATE 1-Sterling slumps on safe-haven demand, weak UK data

Sterling slumped on Friday against the dollar and was set for its worst week against the greenback in a year as renewed fears of a global recession coupled with weaker-than expected UK manufacturing data knocked the British currency. After its biggest six-month decline since 2008 against the U.S. dollar, risk-sensitive sterling fell 1.38% to $1.2011 and 0.7% to 1.1554 Swiss francs, close to a more than two-year low against the Swiss currency touched earlier this week. Sterling also fell against a weakening euro, down 0.7% against the single currency to 86.71 pence.