Sterling dropped to as low as $1.2243 on Monday after falling 1 per cent against the US currency. The pound was also down 1 per cent against the euro at €1.102.
The fall extended a slide that has seen the pound drop from as high as $1.33 in March, hitting British holidaymakers’ spending power as they jet off for summer breaks.
For those heading to countries in the eurozone, the eu pound will now buy 7 cents less than it did in May.
Connor Campbell, a financial analyst at SpreadEx said sterling was going through a “worst-case-scenario end to July” which had set up three months of intense Brexit anxiety.