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Pound falls following 'hard Brexit' speculation

Sterling fell to below $1.20. Credit: PA

The pound fell to its lowest value for more than three months after reports Theresa May is to propose a "hard Brexit".

Before making a slight recovery on Monday, Sterling fell to below $1.20 - its lowest point since October's "flash crash".

The drop comes ahead of the prime minister's speech on Tuesday regarding her approach to Brexit negotiations.

Some Sunday newspapers said Mrs May was heading towards a departure from the single market.

Sterling's slump in the Asian markets also came after Chancellor Philip Hammond suggested ministers could slash corporation tax rates if Briton was frozen out of the single market.