Broad dollar strength and Brexit worries weigh on Britain’s currency

The UK pound dropped below the $1.27 level for the first time since January, with strength in the US dollar and unremitting apprehension over Brexit affecting sentiment. With Sterling declining by as much as 0.28 per cent to $1.269, taking its fall for May to 2.6 per cent.

Last weeks’ loss took place as the greenback similarly pushed against other leading currencies, including the euro and Japanese yen. Against the euro, the pound softened by a further 0.2 per cent, leaving May’s decline at 2 per cent.

Setting the UK currency on course for its lowest month since August 2017, with over a week yet to run, whilst investors also remain acutely anxious over the possible direction for Brexit.