Pound pummelled by stronger dollar, mounting Brexit fears
LONDON (Reuters) - Sterling slid to its lowest level since June 2017 on Friday as a stronger dollar and continued concerns that Britain could leave the European Union without a trade deal pushed investors to sell pounds.
The British currency dropped 0.8 percent to as low as $1.2723, roughly in line with the dollar’s large rise against a basket of major currencies.
The dollar surged on Friday after an investor rush into safer assets on fears of a broader market contagion from a dramatic slide in the Turkish lira.
Sterling has lost 3 percent of its value in August, including 2 percent this week. The pound is headed for its worst weekly performance since February.
Official data on Friday showing Britain’s economy picked up some speed in the second quarter - growing at an expected 0.4 percent after a winter slowdown - provided brief support to the currency.
But the data also pointed to an economy losing momentum in June, and analysts say political worries about Brexit negotiations will keep the pound under pressure.