Sterling fell on Thursday as investors awaited the European Union's decision on whether to grant Britain a Brexit extension and for how long.
After surging to a 5-1/2 month high on Monday, the pound has been back under pressure after lawmakers in the UK blocked Prime Minister Boris Johnson's plan to push through a Brexit withdrawal agreement and get the UK out of the EU on Oct. 31.
Johnson has vowed to seek a general election if Brexit is delayed until January, although many analysts doubt whether there is sufficient support in the British parliament for a pre-Brexit election.
On Thursday, the British currency weakened 0.2% to $1.2875 , while against the euro it dropped 0.2% to 86.315 pence per euro.
Source : Reuters