Sterling falls further as UK finances worsen

The pound yesterday slipped to a four-day low under $1.22, hurt by expectations that Britain’s economy is likely to suffer from a hardline stance by the EU in negotiations on the country’s EU exit.

British prime minister Theresa May, who is in Brussels to attend her first EU summit since Britain’s vote to leave the bloc in June, tried to reassure EU leaders over Brexit but was told by French president François Hollande to prepare for tough talks.

Sterling had been trading just above $1.22 for most of the European trading session, but fell to as low as $1.2171 after US traders arrived at their desks. By mid-afternoon it was trading at $1.2198, down half a percent on the day.