Sterling recovered some of its earlier losses against the dollar and the euro on Wednesday after a Sky News report that Prime Minister Theresa May was going to resign later in the day.
The currency had earlier fallen as much as 0.6% to a four-month low of $1.2625 and plumbed a three-month low against the euro at 88.39 pence. It had been trading around $1.2643 when the Sky report emerged but has since firmed to $1.2673.
Versus the euro it is now at 88.06 pence.
May might resign tonight, Sky's chief political correspondent said, citing a senior lawmaker, but added it was unconfirmed.
Source : Reuters