Traders said there was no obvious catalyst apart from anxiety over Brexit

Holidaymakers bore the brunt of a sterling sell-off yesterday as fears that Britain will leave the EU without a deal sent the pound to its lowest level against the dollar for almost a year.

Travellers exchanging currency at Heathrow were being offered as little as $1.08 or €0.93 for £1. On the markets, sterling fell by 0.5 per cent to $1.286, a loss of more than 10 per cent against the American currency since the middle of April. It had a similar slump against the euro, down to a nine-month low of €1.11.

Traders said there was no obvious catalyst other than growing anxiety over the lack of progress on Brexit before a series of meetings between the EU and Britain starting next month.

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