Sterling tumbles as May's exit plan stokes market fears of UK heading to crash out of EU

Sterling tumbled as Theresa May set down a timetable for her departure and setting up a leadership contest that may elect a hard line Brexiteer and increase the risk of Britain crashing out of the EU.

The currency clawed back some losses but has now fallen over the past two days to trade at 87.32 pence against the euro.