The pound has continued to fall on currency markets amid intensified political uncertainty over Brexit.
Reports of a possible snap general election weighed on sterling as MPs mulled efforts to push for a further three-month Brexit extension.
Against the dollar, it sank more than a cent to $1.2050, while against the euro, it fell below the €1.10 mark.
Prime Minister Boris Johnson has repeatedly insisted that the UK is ready to leave the EU without a deal.
Brexit is currently scheduled to happen on 31 October.
Pound v Dollar
Under Mr Johnson, the government has toughened its stance on a no-deal Brexit, which it has said is “now a very real prospect”.
The pound was trading at about $1.50 against the dollar before the EU referendum in June 2016.
Jane Foley, senior currency strategist at Rabobank, said markets were doubting whether efforts to stop a no-deal Brexit would succeed following news that Conservative MPs who defy Mr Johnson’s plans could lose the whip.
Rumours of a general election had probably compounded this, she said.
“Currency markets as a rule do not like political uncertainty,” she added. “What would appease investors is if legislation that would prevent no deal was passed.”
Pound v Euro
Mr Johnson is considering seeking an early general election if MPs wanting to block a no-deal Brexit defeat the government this week.
Political editor Laura Kuenssberg said it could happen as soon as Wednesday, but no final decision had been taken.
Meanwhile, a cross-party group of MPs is expected to put forward legislation on Tuesday to stop no deal under “SO24” or Standing Order 24 – the rule allowing MPs to ask for a debate on a “specific and important matter that should have urgent consideration”.
Sources have told the BBC the bill would force the prime minister to seek a three-month extension until 31 January if no withdrawal deal has been passed by Parliament by 19 October – the day after the next EU leaders’ summit.