The pound headed south on Tuesday following lawmakers' failure to agree on an alternative plan to Prime Minister Theresa May's Brexit deal and as the European Union's chief negotiator warned it would not re-negotiate the agreement.
At the start of London trading session, sterling extended losses to touch $1.3025, down 0.6 percent on the day. Against the euro, it dropped half a percent to 85.92 pence.
May will chair a five-hour cabinet meeting on Tuesday in an attempt to plot a course out of the Brexit deadlock.
Source : Reuters