Sterling briefly falls to day's lows on Brexit nerves

LONDON: Sterling extended its falls in volatile trading on Wednesday, a move traders attributed to a Telegraph newspaper reporter saying that the British attorney general had raised significant concerns about the customs backstop review mechanism.

The British currency briefly fell half a percent to the day's low at $1.2906 before recouping some losses to stand at $1.2926. Against the euro, it weakened 0.2 percent at 87.20 pence.

The Telegraph's deputy political editor Steven Swinford said on Twitter that Geoffrey Cox, Britain's attorney general, had warned that the customs backstop review mechanism in a draft Brexit deal would be difficult to enforce from a legal perspective.

Prime Minister Theresa May will try to convince senior ministers at a cabinet meeting at 1400 GMT to accept a draft European Union divorce deal that opponents say threatens both her government and the unity of the United Kingdom.