Sterling resumes fall as traders focus on Theresa May’s perceived attack on Bank of England

Sterling has fallen to a 31-year low against the dollar and hit a five-year low against the euro on fears of a hard exit by Britain from the EU and prime minister Theresa May’s comments on the impact of loose monetary policy which some saw as a thinly veiled attack on the Bank of England.

Sterling fell 1% to $1.26, with a Reuters poll showing more losses are in store.

The currency has lost 2.5% this week, hurt by May’s announcement last weekend that the formal process to take Britain out of the EU will start by the end of March.