Sterling eased versus the dollar and the euro on Thursday due to extended political uncertainty even as traders raised bets on a Bank of England interest rate increase in August.
The British currency advanced to $1.3213 versus a broadly weaker dollar, its top since July 17, but reversed gains and slumped into the red territory. It lost 0.1 percent at $1.3180. It was virtually flat against the euro at 88.91 pence.
The pound has been affected by Brexit uncertainty in recent weeks as Prime Minister Theresa May tried to secure a favorable trade deal with the EU.
On the other hand, rising anticipations of a Bank of England interest rate hike helped the currency to recover from 10-month lows touched last week.