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Sterling falls to three-week low against dollar

Reuters
Updated
Wads of British Pound Sterling banknotes are stacked in piles at the Money Service Austria company's headquarters in Vienna

LONDON (Reuters) - Sterling fell to a three-week low against the dollar on Monday, pulled down in holiday-thinned trade by nagging concern over the British government's hard line on Brexit talks.

The pound fell to a low of $1.2905, down 0.6% on the day. It was also 0.6% lower versus the euro at 85.79 pence, hitting its lowest level in over three weeks.

"The direction of last few days has been downward as the market is concerned about post-Brexit negotiations but one wouldn't draw too many conclusions about today's moves as liquidity is poor," said Stephen Gallo, European head of FX strategy at BMO Capital Markets in London.

(Reporting by Dhara Ranasinghe and Sujata Rao)