Sterling traded lower on political worries and the Manchester bomb blast that left 22 people dead.
Prime Minister Theresa May was accused of dishonesty in the wake of her U-turn on “dementia tax” in a blow to the Conservative party´s election campaign. Meanwhile, the insistence from Brexit Secretary David Davis that the UK could walk out of talks with EU negotiators over demands to pay a €100bn divorce bill were an additional source of pound weakness.
The suicide bomb attack in Manchester on Monday night which left 22 people dead and 59 injured also weighed.
Theresa May was forced to change tack after just four days as Conservative campaigners complained that her policy on funding care for the elderly was deeply unpopular. On Monday, May pledged to put in place a limit on what people must pay for social care. It marked a U-turn on the Tory policy published last week that would have scrapped the cap of £72,000 on what the elderly must pay for social care. The cap is due to come into force in 2020 after having been supported by the former Prime Minister David Cameron.