Sterling sinks on 'hard Brexit' fears

London

STERLING skidded to its lowest levels - bar a "flash crash" in October - in 32 years on Monday, hit by fears that Prime Minister Theresa May will say on Tuesday that Britain is set for a "hard Brexit" out of the European Union (EU) and its single market.

Sterling fell as much as 1.5 per cent against the US dollar and 2.5 per cent against the yen. That shifted the spotlight away from the greenback, which has come under pressure in recent days as investors ponder US President-elect Donald Trump's likely economic policies after he takes office on Friday.