Sterling slid for a second day as the markets weighed up the potential Tory challengers to UK Prime Minister Theresa May’s leadership and warned of more “choppy” times ahead.

Sterling fell to the lowest point in nearly a month as reports speculated that UK prime minister Theresa May could face a leadership rebellion from within her own party and new figures showed a slump in UK car sales.

The euro rebounded from the day’s lows yesterday but held well below a two and a half year high hit earlier this month as markets bet the single currency’s double-digit gains this year may be too much for a central bank that is still wary of removing stimulus.

The UK elections are getting tighter, which could mean another nervy few days this coming week for sterling traders and Irish firms depending on the currency.