Sterling falls to two-month low ahead of new UK restrictions

[LONDON] The pound slipped to two-month lows against the dollar on Tuesday ahead of a fresh set of mobility restrictions to be imposed by British Prime Minister Boris Johnson to tackle the second wave of the coronavirus outbreak.

Sterling fell 0.51 per cent to US$1.2751 against the dollar, the lowest level since July 24 while the pound was down 0.25 per cent against the European common currency at 92 pence.

Mr Johnson will tell people on Tuesday to work from home and announce new curbs on pubs, bars and restaurants, stopping some way short of a full national lockdown of the sort he imposed in March.

"Assuming a full two-week lockdown ('circuit-breaker') is avoided, the markets may show signs of relief given there has for some time been a strong assumption that full lockdowns like in March-May would be avoided," MUFG Research said in a note.

REUTERS