Sterling fell against the dollar on Wednesday, as Britain and the European Union (EU) failed to agree on solutions to post-Brexit trade problems in Northern Ireland, increasing threats.
Currency markets have generally been slow so far this week ahead of US Consumer Price Index (CPI) data and the European Central Bank (ECB) meeting.
The pound was ignoring the row between Britain and the European Union over trade arrangements in Northern Ireland, which remained within the EU’s single market after Brexit.
The currency fell after European Commission Vice President Maros Sefcovic said the EU was considering filing its legal appeal to Britain over Northern Ireland, which could lead to a an eventual imposition of tariffs and quotas.
British media dubbed the dispute the “Sausage War” because it affects the movement of refrigerated meat from Britain to Northern Ireland.
Sterling was down 0.3% against the dollar at $1.41165, after hitting a high of $1,419 earlier in the session, ahead of EU comments.
Against the euro, it was down 0.4% on the day at 86.34 pence per euro, its weakest in one week.