The pound has fallen against the dollar amid political uncertainty as Prime Minister Theresa May struggles to broker an agreement on Brexit with her cabinet.
In early trading, sterling fell nearly 1% against the dollar to $1.2845.
Against the euro, it was down 0.2% at €1.1422.
Mrs May is trying to arrange an agreement in cabinet on the current Brexit talks in time for a hoped-for summit in Brussels later this month.
However, media reports suggest that her efforts have been delayed by increasing disarray in her cabinet over the issue.
On Friday, Transport Minister Jo Johnson became the latest government figure to quit his post over Brexit, arguing that UK was “on the brink of the greatest crisis” since World War Two.