The British pound on Tuesday languished near this year’s low on rising worries Boris Johnson, the front-runner to replace UK Prime Minister Theresa May, could put Britain on a path towards a dreaded no-deal Brexit.
The Australian dollar is also at its lowest levels since the flash crash of early January, hit by growing expectations of another rate cut by the country’s central bank and by the spectre of a further slowdown in China - Australia’s largest export market.
The yen and the euro were steadier, with investors holding out for trading clues from policy-setting meetings by the U.S. Federal Reserve and the Bank of Japan as well as a conference organised by the European Central Bank, all scheduled this week.
The U.S-China trade frictions and rising geopolitical tensions in the Strait of Hormuz after recent attacks on tankers are all undermining risk sentiment, he said.
Worries about Brexit hit the British pound, which tumbled to a 5-1/2-month low of $1.2532 on Monday and last traded at $1.2539.
Sterling also fell to its weakest level since January against the euro, which climbed to 89.50 pence, compared to a two-year low of 84.56 touched just over a month ago.
The risk-sensitive Australian dollar drooped at $0.6855, just above its 5-1/2-month low of $0.6849 hit overnight, as trade tensions between the United States and China have shown few sign of abating.
The euro hardly budged at $1.1220 while the dollar was little moved at 108.53 yen.
Source : Reuters