Pound stumbles to month low after latest Brexit deal jitters
Anxiety over the nature of Britain's divorce from Europe has seen sterling slip back down after cautious gains seen last month.
Tuesday 20 December 2016 06:52, UK
The pound has suffered a wobble as markets experience a fresh bout of jitters over Brexit.
Sterling slipped by a cent against the US dollar to below $1.24, its lowest level in a month, before recovering a little.
It was also down by a cent against the euro to less than €1.19.
, with talk of a transitional arrangement for leaving appearing to gain ground.
But sentiment towards the pound weakened after developments over the weekend.
International Trade Secretary Liam Fox, seen as a Brexit hardliner, indicated he was open to a though was cautious about signing up to too many of the EU's regulations.
Meanwhile the Financial Times reported that EU Brexit negotiators were insisting that the UK should agree to its divorce settlement before Brussels could offer any transitional deal.
Britain's vote to leave the European Union in June sent the pound to 31-year lows against the US dollar.
The weak pound, which makes imported goods more expensive, has started to feed through to - which is expected to push above the Bank of England's 2% target next year.
Last week the recent improvement for the pound could mean a milder rise in inflation than it had predicted in November,
But Bank also cautioned that "further volatility" was likely - illustrated by the latest jitters.