The euro and pound sterling slumped against the dollar on Friday after surveys showed the downturn in business activity across the euro zone and Britain deepened this month and the economies were likely entering a recession.

The British pound to U.S. dollar exchange rate fell to a 37-year low under 1.10.

The euro to U.S. dollar exchange rate once fell to 0.9739 on Friday morning, breaking the lowest level in nearly 20 years. 

(With input from agencies)