The pound slipped on Wednesday, falling back from its monthly highs against the dollar and euro, after a dire global economic forecast from the International Monetary Fund diminished risk appetite broadly, boosting the dollar.

The global economy is expected to shrink by 3.0% during 2020 in a coronavirus-driven collapse of activity that will mark the steepest downturn since the Great Depression of the 1930s, the IMF said.

Versus a broadly firmer dollar, the pound was down as much as 0.9%, at $1.2514, erasing Tuesday's gains. Against the euro, it fell to 87.38 pence per euro.

The pound has benefited from improved risk sentiment this month as some countries consider reopening their economies, even as experts warn Britain may be on course to become the worst-affected country in Europe. It reached $1.26 in afternoon trading on Tuesday, its highest since March 13.

Source : Reuters