Monday, 13 August 2018 23:09 WIB |
The pound traded near 13-month lows on Monday, as investors bet on continued dollar strength and uncertainty over whether Britain would secure a trade deal with the European Union before it exits the bloc.
Sterling lost almost two percent of its value last week because of growing unease among investors that Britain was headed for a future without an established relationship with its largest trading partner, the EU.
Warnings this month from Bank of England Governor Mark Carney and trade minister Liam Fox, that the prospect of a no-deal Brexit was growing, triggered the recent slide.
On Monday, the British currency traded flat at $1.2778, a touch higher than a 13-month low of $1.2723 plumbed on Friday.
Sterling was largely reacting to a broad rally in the dollar, fuelled by investors rushing into safer assets on fears of market contagion from a dramatic slide in the Turkish lira.
Against the euro, the pound has held up better as demand for dollars has held back the euro.
The pound traded flat at 89.38 pence per euro, above its recent 2018 lows of 90.30 pence.