Sterling falls 1.5% following May's statement

LONDON, Sept 21 (SEE)- Sterling fell 1.5% during trading on Friday heading for a significant one-day loss this year against the US dollar.

This came following Prime Minister Theresa May's statement at Downing Street. "Talks reached an impasse and could only be unlocked with serious engagement from the EU side," she said.

May added that EU leaders should offer new alternatives to their proposals on Britain's exit from the EU to overcome the stalemate in negotiations between the two sides.

Sterling fell to $ 1.3064, after hitting a two-month high earlier this week.

It also fell 1.2% to 89.86 pence per euro, and British government bond yields fell 3.4 basis points to 1.55%.