The pound fell to the lowest level since November 3 as it hit a session low of 1.3195 on Tuesday as concerns of a trade war escalated after United States President Donald Trump threatened to introduce additional tariffs on $200 billion worth of Chinese goods in response to China’s “unacceptable trade policies.” China warned it will take retaliatory measures in case the US goes ahead with publishing the additional tariffs list.
Meanwhile, investors are anticipating the Bank of England’s interest rate decision due to be announced on Thursday. According to market analysts, the central bank is expected to hold interest rates.
Sterling fell 0.34% against the dollar to go for 1.3199 at 9:58 am GMT. The British currency traded flat against the euro to sell for 1.1398 at 9:59 am CET and dropped 1.07% compared to the yen to change hands for 144.860 at 9:59 am GMT.