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Sterling falls to two-month low ahead of new UK restrictions

Credit: REUTERS/THOMAS WHITE

The pound slipped to two-month lows against the dollar on Tuesday ahead of a fresh set of mobility restrictions to be imposed by British Prime Minister Boris Johnson to tackle the second wave of the coronavirus outbreak.

Graphic: World FX rates in 2020 http://tmsnrt.rs/2egbfVh

Graphic: Trade-weighted sterling since Brexit vote http://tmsnrt.rs/2hwV9Hv

LONDON, Sept 22 (Reuters) - The pound slipped to two-month lows against the dollar on Tuesday ahead of a fresh set of mobility restrictions to be imposed by British Prime Minister Boris Johnson to tackle the second wave of the coronavirus outbreak.

Sterling fell 0.51% to $1.2751 against the dollar, the lowest level since July 24 GBP=D3 while the pound was down 0.25% against the European common currency at 92 pence EURGBP=D3.

Johnson will tell people on Tuesday to work from home and announce new curbs on pubs, bars and restaurants, stopping some way short of a full national lockdown of the sort he imposed in March.

"Assuming a full two-week lockdown ('circuit-breaker') is avoided, the markets may show signs of relief given there has for some time been a strong assumption that full lockdowns like in March-May would be avoided," MUFG Research said in a note.

(Reporting by Thyagaraju Adinarayan and Maiya Keidan, editing by Sinead Cruise)

((Maiya.Keidan@thomsonreuters.com; 44 207 542 1594; Reuters Messaging: maiya.keidan.thomsonreuters.com@reuters.net))

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