LONDON: Sterling fell back towards 7-year lows against the dollar on Tuesday, hit by a continuation of a slide on oil and stock markets that has added to concerns that Britain could vote to quit the European Union.
The pound appeared to gain a foothold at the end of last week, but with expectations of a rise in Bank of England interest rates this year having collapsed, it is still close to its weakest level in a year against the euro, and resisting a first fall below $1.40 since the 2008 financial crash.
Sterling fell around a third of a percent in morning trade to $1.4197 and 76.33 pence per euro respectively.
"We are struggling a bit for more direction after the past month's falls," said a dealer with one international bank in London.
"It still feels like there are more sellers out there, but we have come a long way. $1.40 is a big number."
Bank of England Governor Mark Carney is due to talk to a parliamentary committee from 1000 GMT on financial stability, and a handful of other policymakers are also speaking on Tuesday.
Fellow monetary policy committee member Kristin Forbes will say in a speech that the latest fall in oil prices allows the Bank of England "the luxury of a bit more time" before deciding if the job market is tight enough to require a rate rise.
Markets have already pushed that timeline out into next year.
Citi strategist Josh O'Byrne pointed to the first release of fourth quarter growth data on Thursday as a possible catalyst for the pound.
"With downside risks at least partly discounted, the bigger shock from data this week would probably be with strength," he said.
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