Sterling fell on Monday near a 31-year low against the dollar and to a three-year low versus the euro after a March deadline was set for the start of the formal process that will split Britain from the European Union. The currency fell to just above $1.27, lower even than in the immediate aftermath of the EU referendum on June 23, when Brits voted to take their country out of the 28-member group. Robust construction data couldn’t prevent another 0.5 per cent fall for the pound as it extended Monday’s heavy tumble to wallow at $1.2764 and a three-year low of 87.51 pence per euro. “In terms of silver linings, the pound’s protracted demise has continued to lift the multinationals that make up the FTSE 100, leaving the index back above 7,000 for the first time in 16 months.”

The FTSE rallied to a gain of 1.6 percent in morning deals, compared with Monday’s close. Conner Campbell of SpreadEx said the prospect of a "hard Brexit" is hurting the pound: "It seems that it is going to be hard to provide a tourniquet for sterling’s recent wounds given the solidity of the newly announced Brexit timeline (with March set to go down in the history books as when Article 50 was triggered), and the firmness with which May stated her intention to chase border control even if it means relinquishing Britain’s position in the single market."
Following the June 23 Brexit vote, the exchange rate for the British pound reaches a 31-year low against the United States dollar.