Sterling fell for the third straight day on Tuesday, dragged down by a firmer dollar and concern that the new prime minister, whose identity will be known later in the day, will pull Britain out of the European Union with no trade deal in place.

The result of the Conservative Party election will be announced just after 10:00 GMT, with Brexiteer Boris Johnson widely expected to have beaten foreign minister Jeremy Hunt. The winner will become prime minister on Wednesday.

Johnson has declared that the Oct. 31 Brexit deadline is set in stone and Britain will leave the EU then even if no transitional trading arrangements are in place.

The pound fell 0.3% versus the dollar by 0745 GMT at $1.2441, heading back towards recent two-year lows of $1.2382, battered also by a surge in the dollar.

Against the euro it was down 0.2% at 89.97 pence EURGBP=D3.

Source : Reuters