The pound declined against its major counterparts in the Asian session on Monday, as investors became cautious over the prospectus of the European Union and Britain reaching a Brexit deal before the end of the year.
Split between the cabinet ministers and U.K. Prime Minister Theresa May has intensified, with four EU remain-leaning ministers on the verge of resigning from the government, the Sunday Times reported.
Brexit negotiations remain deadlocked over plan to avoid a hard border on the island of Ireland.
Transport Minister Jo Johnson resigned on Friday, while other ministers were extremely hard on their position.
Underlying sentiment remained cautious amid concerns about rising interest rates, slowing global growth and anxiety over peaking corporate earnings.
The pound slipped to 1.2841 against the greenback, its lowest since November 1. The pound is poised to find support around the 1.26 level.
The U.K. currency declined to a 10-day low of 146.49 against the yen, from last week's closing value of 147.62. On the downside, 144.00 is possibly seen as the next support level for the pound.
The pound fell to near a 2-week low of 1.2961 against the Swiss franc, from a high of 1.3024 hit at 10:30 pm ET. The pound is likely to challenge support around the 1.28 level.
On the flip side, the pound recovered to 0.8748 against the euro, from a 10-day low of 0.8774 seen at 1:30 am ET. At last week's close, the pair was worth 0.8734.
Looking ahead, at 2:30 pm ET, Federal Reserve Bank of San Francisco President Mary Daly speaks about the economic outlook at the Regional Economic Development for Eastern Idaho Conference.
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