The pound fell versus the dollar on Tuesday after traders saw as dovish comments from incoming Bank of England rate-setter John Haskel about the uncertainty of the impact of Brexit on the economy.
Sterling fell as much as half a percent as Haskel, whose views on monetary policy are relatively unknown and who replaces a policymaker who has called for higher interest rates, spoke to the British parliament’s Treasury Select Committee.
Sterling had enjoyed a bounce off 7-month lows last week after a Bank of England meeting last week raised expectations of a rate hike in the coming months. But the rally has proved short-lived.
The pound fell half a percent to $1.3208, still above its 7-month lows of $1.3102 plumbed last week.
Sterling also gave up its gains versus the euro to 88.120 pence per euro as Haskel spoke.
The British currency had already been under pressure on Tuesday as concerns about a growing trade conflict between the United States and other major economies limited investor appetite for risk.
Sterling traders were also refraining from taking out big positions before a European Union leaders’ summit later this week.