Following a phone call between Boris Johnson and Angela Merkel, the German chancellor has reportedly rejected the prime minister’s Brexit offer.
As a result, the pound dropped by more than 0.4% against the dollar to £1.225. Against the euro it fell by 0.68% to a €1.11 four week low.
Neil Wilson, the chief market analyst at Markets.com said, “Sterling is under the cosh again as hopes of a deal between the UK and EU fade.
“The last flicker of hope was snuffed out this morning after a call between the prime minister and chancellor Merkel of Germany left the process at an impasse.”