Sterling fell against the dollar on Monday, tracking losses in the euro after comments from German officials tempered optimism that a European Union summit this week will produce a comprehensive plan to tackle the eurozone debt crisis. German Finance Minister Wolfgang Schaeuble dampened demand for the euro when he said Sunday's summit of EU leaders will not present a definitive solution for the region's debt problems.
His comments helped lift the pound from a five-week low versus the single currency, but saw sterling relinquish early gains versus the dollar. Comments from other German government officials also prompted investors to pick up the greenback, considered to be a relatively safe bet in times of uncertainty. The pound was last trading down 0.3 percent at $1.5771, after earlier falling to a session low of $1.5731.
Meanwhile, the euro fell 0.6 percent versus the pound to 87.16 pence, retreating from a five-week high of 87.97 pence hit earlier in the session, with traders citing corporate sellers. The single currency was unable to hold above 87.90 pence, around its 100-day moving average, which has been a technical resistance level since early September.
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