Pound tumbles to 31-year low

LONDON: Britain´s pound slumped to a three-decade low on Tuesday as concerns over Brexit were compounded by the renewed strength of the dollar on resurgent U.S. interest rate hike expectations.

The pound fell to $1.2757 -- its lowest since 1985 -- from $1.2841 while the euro was at a three-year high of 87.55 pence from 87.30 pence.

Sterling was at its weakest since 1985, hit by a growing sense that the UK may be heading for a ‘hard’ Brexit where it severs links to the EU´s single market in favour of total control over immigration.

Robust construction data couldn´t prevent another 0.7 percent fall for the pound as it extended Monday´s heavy tumble to wallow at $1.2750 and a three-year low of 87.50 pence per euro.

"It is now abundantly clear that access to the single market is not on (UK Prime Minister) Theresa May´s list of top priorities and the market is realising that... there is more pressure for the pound in the weeks and months ahead," said UniCredit´s Global Head of FX Strategy, Vasileios Gkionakis.

The British unit has been hammered this week after May at the weekend said Britain will trigger Brexit negotiations by the end of March, and her finance minister warned of "turbulence" for the economy.

While the British economy has showed signs of improvement in the months since the shock vote to leave, there are concerns about the wider long-term impact of the bloc losing its second biggest economy.