The pound fell after European Union leaders bluntly rejected U.K. Prime Minister Theresa May’s Brexit blueprint and warned that time is running out for striking a deal.
Sterling still headed for a second weekly gain versus the dollar, bolstered by stronger-than-forecast inflation and retail-sales data and some positive sentiment even as Brexit talks appeared stalled.
The pound dropped 0.4 percent to $1.3217 as of 8:44 a.m. in London, paring its gain this week to 1.1 percent. It climbed to $1.3298 Thursday, the highest level since July 10. Sterling weakened 0.3 percent to 89.07 pence per euro, down 0.2 percent this week. U.K. government bonds were little changed, with the 10-year yield at 1.58 percent.