LONDON Oct 11 Sterling fell back below $1.23 on
Tuesday, trading down 0.6 percent on day as it
continued to suffer from concerns about the economic fallout of
Britain's planned exit from the European Union.
Trade-weighted sterling hit a nearly-eight-year low of 74.0
at the Bank of England's first morning print of the
index, which measures the pound's broader strength.
It was also half a percent weaker at 90.51 pence per euro
Some traders cited a Financial Times report that Russian
bank VTB may move its European hub to Frankfurt, Paris or Vienna
as having added to worries of financial sector cutbacks in
London due to Brexit.
"There is nothing to go on on the data front today, but
concerns surrounding our ever increasing current account deficit
have reignited discussion around the widespread impact such a
hole can create," said Tobias Davis, head of corporate treasury
sales at Western Union in London.
"Liquidity is also a cause for concern as present,
highlighted by gaps in price action."
(Reporting by Patrick Graham; Editing by Jemima Kelly)