Sterling fell to a 31-year low on Thursday on fears of a "hard" exit by Britain from the EU and Prime Minister Theresa May's comments on the impact of loose monetary policy, which some saw as a thinly veiled attack on the BoE. May, in a speech to Conservative Party delegates on Wednesday, raised the issue of the side effects of ultra-low interest rates and money-printing. Sterling fell 1% to $1.2622, with a Reuter’s poll released on Thursday predicting more losses are in store.
The currency has lost 2.5% this week, hurt by May's announcement on Sunday that the formal process to take Britain out of the EU will start by the end of March.
The euro hit a five-year high while sterling's trade-weighted index was stuck near lows last seen in early 2009 at 88.51 pence earlier Thursday. It was last down 0.5% at 88.32 pence per euro.