Ramla SoniSterling (GBP) slipped below $1.23 against the dollar after a Bank of England (BoE) policymaker said the next move for the central bank could be a rate cut, CNBC reported.
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Bank of England policymaker Michael Saunders said the UK could be looking at an interest rate cut if uncertainty around Brexit prolongs.
Following these comments, the pound slipped more than 0.4% against the dollar to trade at $1.228.
Sterling is down more than 3% since the start of the year and is down more than 1% since the UK voted to leave the European Union (EU) in June 2016.
Last week, the Bank of England held interest rates steady but warned that another delay to Brexit could cause more economic instability.
Boris Johnson has promised to deliver Brexit by 31 October even if that means leaving without a deal in place.
A no-deal Brexit would mean an abrupt departure from the EU with no transition period for businesses.
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